jC-r=Cono/72/'cS  /_J^^^^^^^^ ^o^' 


OFFICE  TRAINING 

and 

STANDARDS 


By  FRANK  C.  McCLELLAND 


A,  W.  SHAW  COMPANY 

CHICAGO  NEW    YORK 

LONDON 


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COPYRIGHT.  ]919,  BY  A.  W.  SHAW  COMPANY 
MArN  LIBrJARV 


relNTED  in  THB  OWITBD  8TATE8  0»  AUEBICA 


TO  THE  STUDENT  OF  OFFICE 
PRACTICE 

rriHE  difference  between  work  and  play  is  simply  the  differ- 
'-  ence  between  your  attitude  toward  work  and  your  attitude 
toward  play.  Office  work  can  easily  be  turned  into  a  fascinating 
game,  just  by  following  the  rules  and  keeping  score. 

''How  can  I  keep  score  on  work?"  Just  the  same  way  you 
keep  score  in  a  game.  In  a  baseball  game  you  count  the  hits, 
the  runs,  the  fouls,  and  so  on.  In  business  you  can  also  count 
the  hits,  the  runs,  and  the  fouls. 

Every  time  you  finish  a  task,  you  make  a  ''hit";  each  mis- 
take counts  as  a  "foul";  every  time  you  fail  to  finish  a  task, 
you  make  a  "strike";  and  if  you  fail  often  enough,  you  "strike 
out."  On  the  other  hand,  work  quickly  done  counts  as  a  "ball" 
and  four  balls  give  you  your  "base";  you  score  a  home  run 
every  time  you  receive  advancement. 

What  are  the  rules?  There  are  only  three  rules  for  success 
in  business;  they  are:  learn  the  game,  play  the  game,  and  stick 
to  it.  Simple?  Yes,  but  you  will  find  that  something  just  as 
simple  lies  at  the  bottom  of  everything  that's  worth  while. 

This  book  will  show  you  how  to  play  the  game.  Here  are 
a  few  suggestions  that  will  help  you  to  get  the  most  out  of  the 
book :  As  you  thumb  over  the  pages,  you  will  see  illustrations  of 
various  kinds — photographs,  charts,  diagrams,  forms. 

Study  these  illustrations  carefully.  They  were  not  put  in  to 
fill  up  the  book,  or  to  make  it  look  nice.  Each  illustration  was 
selected  with  a  purpose,  and  thousands  of  illustrations  were 
examined  before  the  final  selection  was  made. 

If  the  illustration  is  a  photograph,  see  how  many  different 
objects  in  it  you  can  pick  out.  Ask  yourself  what  the  purpose 
of  each  object  is  and  why  it  is  shown. 

You  will  find  the  charts  are  helpful,  if  they  are  used  correctly. 
The  only  justification  for  using  a  chart  is  to  make  a  situation 


\  nriOf^ 


PREFACE 

clearer  than  is  possible  by  a  written  description  or  by  columns 
of  figures.  A  chart  which  is  unintelligible  is  worse  than  none  at 
all;  it  takes  up  valuable  time  and  space.  As  you  examine  each 
chart  try  to  analyze  it  just  as  you  would  a  photograph.  Try 
to  find  a  reason  for  everything  on  the  chart. 

The  forms  are  not  merely  "something  to  fill  out."  If  they 
were,  blank  sheets  of  paper  would  be  just  as  serviceable.  A 
properly  designed  form  does  not  call  for  any  useless  information, 
but  it  does  call  for  all  the  information  that  is  necessary. 

Analyze  carefully  each  form  in  the  book  and  see  if  you  can 
give  the  reason  for  the  form  as  it  stands.  Also  try  to  improve 
the  form,  if  you  can. 

You  will  find  some  of  the  charts  and  tables  well  worth  mem- 
orizing. Do  so.  An  easy  way  to  memorize  something  is  to  read 
it  over  once  or  twice,  and  be  sure  you  get  the  meaning  of  it. 
Close  your  eyes  and  try  to  recall  how  it  looks.  Read  it  once 
more  and  then  copy  it  on  a  sheet  of  paper. 

After  you  have  copied  it,  compare  it  with  the  original  to  make 
sure  it  is  an  exact  copy.  Then  put  both  original  and  copy  out 
of  sight  and  try  to  make  a  copy  from  memory.  Do  not  be  dis- 
appointed if  you  don't  get  it  the  first  time.  If  it  were  possible 
to  jump  from  the  bottom  of  a  ladder  to  the  top,  the  rungs  would 
never  have  been  put  in. 

Every  business  has  a  purpose.  That  purpose  is  usually  to 
make  a  profit  for  the  owner  of  the  business,  whether  that  owner 
be  one  man,  as  in  the  case  of  a  butcher  shop,  or  several  thou- 
sand stockholders,  as  in  the  case  of  the  United  States  Steel 
Corporation  or  of  a  railroad. 

Not  only  must  the  business  make  a  profit,  in  order  to  succeed — 
it  must  also  render  some  service  to  the  community.  Every 
business  is  successful  just  to  the  degree  that  it  makes  itself 
serviceable  to  the  community,  and  every  new  business  is  expected 
to  justify  itself  by  rendering  a  new  or  superior  service. 

The  constant  study  of  every  business  organization  and  every 
individual  entitled  to  any  position  in  the  business  world  is  or 
should  be  how  to  improve  the  service  rendered  to  the  community. 
But  the  basic  reason  for  business,  which  in  the  last  analysis  is 
simply  the  buying  and  selling  of  commodities  or  service,  is  to 
make  a  profit. 


PREFACE 

For  example,  the  butcher  buys  the  Hve  animal  at  a  price,  kills 
it,  cuts  it  up,  and  sells  the  various  parts  of  the  animal  for  more 
than  he  paid  for  it.  Not  only  must  he  get  more  than  he  paid 
for  it,  but  he  must  also  see  that  the  selling  price  pays  for  his  own 
labor,  the  labor  of  his  men  if  he  has  any,  the  rent  of  his  butcher 
shop,  his  light,  heat,  equipment,  and,  if  he  has  borrowed  money, 
interest  on  the  borrowed  money.  He  must  also  protect  his  shop 
from  fire,  and  the  selling  price  must,  therefore,  include  the 
cost  of  the  insurance. 

Now  if  the  butcher  bought  and  sold  only  one  animal  a  year 
and  paid  all  his  bills  once  a  year,  he  would  need  to  include  in  the 
selling  price  of  the  meat  from  that  one  animal  all  his  costs  for 
that  year.  The  result  would,  of  course,  be  an  absurdly  high 
price  for  the  meat. 

But  the  butcher  sells  more  than  one  animal  a  year,  He  may 
not  sell  the  bones  until  he  has  a  pile  that  may  have  come  from 
twenty  or  thirty  cattle.  This  pile  of  bones  may  have  accumu- 
lated in  five  days,  or  it  may  have  taken  five  weeks.  In  any 
case  that  pile  of  bones  has  cost  something,  and  the  butcher  must 
get  that  cost  back,  with  a  profit. 

How  the  butcher  gets  his  cost  back,  what  that  cost  is,  how 
he  determines  what  profit  to  add,  how  he  determines  when  to 
buy  cattle  and  when  to  sell,  when  to  keep  on  accumulating  bones 
and  when  to  dispose  of  them,  where  to  keep  his  meat  and  to 
whom  to  sell  it,  whether  to  buy  and  sell  for  cash  or  have  the 
goods  charged,  whether  to  carry  groceries  in  addition  to  meats, 
whether,  in  short,  to  do  or  not  to  do  the  thousand  and  one  things 
that  come  up  continually,  day  after  day — all  of  these  are  deter- 
mined by  what  are  called  business  policies. 

The  pohcy  of  a  business  house  determines  very  largely  where 
that  house  is  headed,  and  what  it  is  doing.  "Honesty  is  the  best 
pohcy"  is  a  fundamental,  and  in  that  fundamental  and  the  extent 
to  which  it  is  practiced  in  all  business,  lies  largely  the  success 
of  the  business. 

But  this  is  only  one  policy.  There  must  be  hundreds,  and 
sometimes  thousands,  of  other  policies.  Policies  are  the  guide 
posts  which  direct  the  course  of  the  business,  and  like  guide 
posts,  all  the  poHcies  of  the  business  must  lead  in  the  same 
direction,  to  get  to  the  desired  point,  which  is  usually  profits. 


PREFACE 

The  head  of  the  business  sets  the  guide  posts,  or  poHcies. 
His  assistants  follow  the  guide  posts  he  has  set.  This  is  called 
"carrying  out  the  poUcies."  In  carrying  out  the  pohcies,  more 
help  is  needed  with  some  poUcies  than  with  others.  Take  letter 
writing  for  example:  common  courtesy  requires  that  all  letters 
requiring  answers  shall  be  answered  within  a  reasonable  time. 
Some  letters  will  be  answered  one  way,  some  another.  A  letter 
of  complaint  would,  of  course,  be  handled  differently  from  a 
letter  ordering  goods.  Here  there  are  two  policies  in  force,  easily 
determined.  The  first  pohcy  requires  that  all  complaint  letters 
shall  be  handled  tactfully,  so  as  to  satisfy  the  customer,  and  still 
keep  his  trade.  The  second  policy  requires  that  the  order  shall 
be  shipped  to  the  customer  just  as  soon  as  possible,  and  in  the 
way  the  customer  requested. 

In  carrying  out  these  policies,  other  minor  policies  or  guide- 
posts  may  be  required,  just  as  the  country  roads  have  signs 
pointing  the  way  to  the  main  highway,  which  in  turn  has  guide- 
posts  pointing  to  the  big  city,  the  ultimate  goal.  The  main 
highway  represents  the  road  over  which  the  business  is  travehng 
to  the  goal  of  profits.  The  side  roads  may  represent  the  different 
departments  which  contribute  their  share  to  the  main  highway. 
And  there  may  be  still  smaller  roads  leading  into  the  side  roads. 
Some  of  these  smaller  roads  may  be  only  foot  paths.  But, 
whether  the  way  be  a  footpath,  a  side  road,  or  the  main  high- 
way, the  guide-posts  which  we  call  pohcies  are  necessary  to 
guide  our  steps  every  foot  of  the  way. 

It  is  evident  that  at  some  steps  many  assistants  will  be 
required.  It  is  also  evident  that  every  assistant,  whether  he  be 
the  assistant  manager  or  the  office  boy,  whether  he  be  a  book- 
keeper or  a  stock  clerk,  has  a  definite  part  in  every  business,  has 
certain  definite  policies  to  carry  out,  certain  definite  guide-posts 
to  follow,  and  just  to  the  extent  that  those  guide-posts  are  fol- 
lowed, from  the  office  boy  up  to  the  president,  just  to  that  extent 
will  the  business  prosper.  And  just  as  the  neglect  of  the  president 
to  follow  the  instructions  on  the  guide-posts  of  the  main  highway 
may  lead  to  the  desert  of  loss  instead  of  the  city  of  profit,  just 
so  may  the  neglect  of  the  assistants  on  the  footpaths  and  side 
roads  to  follow  their  guide-posts  lead  them  into  the  woods  instead 
of  out  into  the  main  highway  which  leads  into  the  city  of  profit. 


PREFACE 

Do  not  think,  however,  that  the  president's  and  the  man- 
ager's jobs  are  the  only  well-paid  ones  in  the  office.  They  aren't. 
While  we  should  all  try  to  qualify  ourselves  for  the  manager's 
job,  we  must  not  forget  that  there  are  other  well-paid  positions 
in  every  office. 

The  demand  for  expert  stenographers  has  never  been  satisfied. 
From  a  stenographic  position  to  the  work  of  a  private  secretary 
is  but  a  step.  There  is  probably  no  quicker  way  to  learn  a 
concern's  business  methods  than  through  its  correspondence. 
The  secretary  is  always  handling  the  intimate  details  of  his 
employer's  work,  and  gets  invaluable  training  first  hand. 

More  and  more  each  year  stenographers  are  entering  court 
and  pubhc  work.  Court  stenographers  command  high  pay, 
although  the  strain  is  very  severe  and  the  pace  terrific.  Many 
pubhc  stenographers  have  their  own  offices  and  staffs,  and  the 
calhng  is  dignified  as  well  as  remunerative. 

Over  one  hundred  miUion  dollars  in  sales  are  made  each 
year  by  mail  by  one  house  alone — that  is  a  specific  example  of 
the  possibihties  of  letter  writing.  That  is  also  one  reason  why 
the  man  or  woman  who  can  write  good  business  letters  is  always 
in  demand.  The  work  of  the  correspondent  is  pleasant  and 
agreeable,  and  the  position  is  well  paid. 

Many  a  successful  man  today  looks  back  to  the  time  when 
he  first  studied  bookkeeping.  Indeed,  without  bookkeeping, 
modern  business  would  be  a  mystery.  Whether  you  ever  become 
a  bookkeeper  or  not,  you'll  probably  never  regret  the  time  spent 
in  acquiring  a  knowledge  of  the  subject. 

From  bookkeeping  to  accounting  the  transition  is  easily 
made.  Accountants  today  hold  important  positions  in  big 
concerns.  The  abihty  to  tell  whether  a  business  is  going  ahead 
or  falling  behind  is  worth  a  lot  in  these  days  of  intense  competi- 
tion.   The  positions  of  auditor  ajnd  controller  carry  high  salaries. 

Among  the  other  good  positions  available  to  the  ambitious 
worker  are  those  of  purchasing  agent,  traffic,  employment, 
advertising,  and  sales  managers,  assistant  department  heads, 
and  supervisors  of  many  kinds  of  work. 

This  book  is  for  every  office  worker,  regardless  of  his  or  her 
position,  as  well  as  for  those  who  are  not  yet  engaged  in  but 
are  looking  forward  to  office  work. 


PREFACE 

If  you  are  or  expect  to  be  a  stenographer,  a  private  secretary, 
a  correspondent,  this  book  wall  show  you  how  to  become  more 
efficient  in  your  work,  a  more  capable  assistant,  an  indispensable 
aid  to  your  employer. 

If  you're  a  bookkeeper  or  expecting  to  become  one,  yoa  can 
learn  how  to  gain  a  deeper  insight  into  the  intricacies  of  account- 
ing and  office  work,  through  this  book. 

A  file  clerk  can  not  only  improve  his  or  her  filing,  but  can 
also  make  the  files  really  live,  something  more  than  dry  masses 
of  papers  and  records — make  them  the  vitals  of  the  business. 

The  stock  clerk,  the  typist,  the  copyist,  the  dictating-machine 
operator,  the  bill  clerk,  the  operator  of  office  machines,  the  order 
clerk,  the  cashier,  the  wrapper,  the  addresser,  the  supervisor  and 
the  inspector,  the  messenger  boy  and  girl  the  checker — in  fact, 
every  clerk  and  assistant  in  the  office  will  find  in  this  book  an 
opportunity  for  which  they  have  longed,  a  chance  to  look  beyond 
their  job  and  prepare  for  the  job  ahead. 

If  you  are  working  for  the  purchasing  agent  or  the  traffic 
manager,  the  auditor  or  the  sales  manager,  the  controller  or  the 
advertising  manager — in  whatever  part  of  the  office  you  are  work- 
ing or  expect  to  work,  you  will  find  this  book  your  best  friend. 

If  you  will  master  its  pages,  you  will  not  only  have  a  better 
knowledge  and  idea  of  your  own  job  and  its  meaning  but  you 
will  be  ready  for  advancement  far  ahead  of  others  who  may  be 
wasting  their  opportunities. 

Every  hour  you  spend  in  mastering  this  book  will  return  to 
you,  ten,  twenty,  fifty,  or  even  a  hundred  times  its  present  worth, 
in  real  money.  The  policies  and  methods  here  given  will  guide 
you  to  more  effective  work,  show  you  where  you  are  going,  and 
enable  you  to  use  your  strength  and  knowledge  and  ability 
where  it  will  count  the  most  for  you  in  dollars  and  cents  and  for 
the  business  into  which  you  may  go. 

The  guide-posts  which  are  pointed  out  to  you  in  this  book 
have  been  tried  and  tested,  proved  and  found  effective.  The 
wealth  of  material  placed  at  the  author's  disposal  by  the  pub- 
lishers, has  enabled  him  to  pick  and  choose  from  the  experiences 
hterally  of  thousands  of  business  houses. 

All  the  resources  of  the  A.  W.  Shaw  Company,  its  editors, 
its  traveling  and  resident  investigators,  and  its  immense  and 


PREFACE 

well-digested  masses  of  commercial  data— accurate,  broad,  and 
down  to  the  minute— have  been  freely  drawn  upon,  even  to  the 
charts,  photographs  and  diagrams  which  make  it  so  easy  to 
understand  business  methods. 

In  addition  to  the  publishers,  the  author  is  also  indebted  to 
the  following  concerns,  from  whose  experiences  it  has  been  his 
privilege  to  draw:  Western  Union  Telegraph  Company;  R.  G. 
Dun  &  Company;  Ford  Motor  Company;  Curtis  Publishing 
Company;  Chicago  Telephone  Company;  Yawman  &  Erbe; 
Westinghouse  Electric  &  Manufacturing  Company;  Chicago 
City  Directory  Company;   Chicago  Clearing  House  Association. 

The  author  wishes  to  express  his  thanks  to  Mr.  Sherwin  Cody 
for  the  use  of  some  material,  as  well  as  to  the  publishers  of  the 
American  Magazine  for  the  privilege  of  reprinting  some  material 
in  the  chapter  on  Personality  in  Business. 

To  Mr.  W.  H.  Leffingwell  the  author  is  indebted  for  some 
valuable  expert  suggestions  on  scientific  office  management  and 
for  permission  to  use  some  material  from  Mr.  Leffiingwell's 
splendid  report  on  that  subject;  to  Samuel  B.  King,  Esquire, 
of  the  Chicago  bar,  who  certified  to  the  correctness  of  the  legal 
matter  in  the  text;  to  Mr.  L.  L.  Jones  of  the  Cleveland  High 
School  of  Commerce,  and  to  Mrs.  Margaret  Herbert  of  the 
Springfield  (Missouri)  High  School,  for  reading  the  manuscript 
and  for  their  suggestions  for  improving  the  text ;  to  Mr.  WilHam 
Bachrach,  District  Supervisor  of  the  Commercial  Schools  of 
Chicago,  for  reading  the  manuscript  and  for  his  helpful  sugges- 
tions; to  Miss  Esther  Jane  Helfrich  of  the  editorial  stafT  of  the 
A.  W.  Shaw  Company,  whose  help  in  putting  the  book  on  a  high 
standard  of  composition  has  been  welcome;  and  to  the  managing 
editor  of  the  text-book  department  of  the  A.  W.  Shaw  Company, 
Mr.  Edwdn  M.  Robinson,  who  assisted  in  the  preparation  of  the 
material  and  whose  encouragement  throughout  has  been  a  source 

of  help  and  inspiration. 

Frank  C.  McClelland 


CONTENTS 

CHAPTER  I 

The  Development  of  the  Office 1 

What  it  takes  to  make  an  office.  Facilitating  the  transaction  of 
business.  The  one-man  oflBce.  What  a  functional  office  is.  Where 
the  thinking  is  done.  How  details  are  handled.  Why  letter 
writing  is  important.  Why  records  must  be  kept.  How  the 
results  are  shown.  The  relation  of  the  office  to  the  rest  of  the 
organization.  Production.  Distribution.  Administration.  The 
management  and  the  employee.    A  spur  to  ambition. 

CHAPTER  II 

Handling  Correspondence 9 

How  the  incoming  mail  is  handled.  How  the  mail  is  opened. 
Why  letters  must  be  inspected.  What  to  do  with  enclosures. 
How  to  classify  the  mail.  Handling  the  cash  mail.  Addressing. 
How  to  fold  a  business  letter.  Window  envelops.  Sealing  and 
stamping  envelops.  Mailing  and  mailing  machines.  Insurance, 
registration,  and  special  delivery.  The  work  of  the  correspon- 
dence department. 

CHAPTER  III 

Stenographic  Work  and  Standards 21 

How  letters  are  written.  Analyzing  the  letters.  Methods  that 
save  time  in  answering  letters.  Taking  dictation.  How  the  dic- 
tating machine  works.  Transcribing,  Labor-saving  devices. 
Several  ways  of  making  copies.  The  stencil  duphcator.  Getting 
letters  ready  to  sign.  How  to  verify  enclosures  and  remittances. 
Dictation  machine  standards.  Some  standards  for  stenographers 
and  typists.  Taking  dictation.  How  to  say  what  you  mean. 
The  choice  of  words.  Watching  your  English  when  dictating. 
What  one  stenographer  discovered  about  her  work.  Errors  to 
avoid  in  transcribing  correspondence,  A  test  of  stenographic 
ability.  What  a  typist  should  be  able  to  do.  How  to  increase 
speed  and  accuracy.  The  technique  of  business  correspondence. 
Some  suggestions  that  may  help. 


CONTENTS 

CHAPTER  IV 

Office  Reference  Books  and  How  to  Use  Them  ...  43 
Various  kinds  of  reference  books.  The  three  most  useful  books. 
The  city  directory  and  how  to  use  it.  How  to  use  the  telephone 
directory.  Classified  directories.  What  you  can  do  with  syn- 
onyms. Some  special  directories.  Sources  of  mailing  lists.  How 
to  use  a  code  book.  Credit  rating  books.  Atlases  and  gazetteers. 
The  railroad  pathfinder.  The  U.  S.  postal  guide.  Special  bulle- 
tins and  guides     Trade  periodicals  and  business  magazines. 

CHAPTER  V 

Using  the  Telephone  and  Telegraph  to  Best  Advantage  59 
When  to  use  the  telephone  and  when  the  telegraph.  The  proper 
way  to  telephone.  How  to  call  a  number.  How  to  answer  the 
telephone.  Answering  calls  for  your  employer.  Handling  inter- 
house  calls.  One  way  of  getting  confidential  information.  How 
the  telegraph  facilitates  business.  What  it  costs  to  telegraph. 
How  to  write  a  telegram.  How  one  manager  handles  telegrams. 
How  to  use  cipher  and  code  words.  How  to  make  your  message 
clear.  Three  ways  to  save  money  in  telegraphing.  How  to  deter- 
mine which  kind  of  message  to  use.  Long  distance  messages. 
Cable  messages  and  addresses.  Wireless  addresses.  How  to 
transfer  money  on  short  notice.  Allowing  for  differences  in  time 
when  telegraphing. 

CHAPTER  VI 

What  the  Files  are  for 79 

The  essentials  of  a  good  filing  system.  Equipment,  Flat  files, 
vertical  files  and  card  indexes.  How  the  files  are  indexed.  How 
to  make  filing  easy.  The  alphabetical  system.  The  geographical 
system.  Filing  by  number.  Filing  by  date.  Finding  letters  in 
the  follow  up.  How  to  file  carbons.  What  topical  filing  is. 
Alphabetical-numerical  filing.  The  advantages  and  disadvan- 
tages of  different  methods.  The  right  way  to  get  letters  from 
the  files.  How  long  should  letters  be  kept  in  the  files?  The  tech- 
nique of  filing. 

CHAPTER  VII 

The  Purchasing  Department 99 

The  object  of  the  purchasing  department.  Requisitions.  How 
the  purchasing  agent  watches  the  market.  Getting  classified 
information  for  the  buyer.    Some  sources  of  information.    How  to 


CONTENTS 

get  estimates.  Why  are  purchase  orders  necessary?  How  one 
buyer  follows  up  his  orders.  The  stockroom.  Guarding  against 
fire  and  theft.  How  to  know  how  much  stock  you  have  on  hand. 
How  to  take  an  inventory  of  stock.  What  the  perpetual  inventory 
is.    Values  and  prices.    Points  of  law. 


CHAPTER  VIII 
The  Sales  Department        115 

What  the  salesmen  are  supposed  to  do.  Doing  business  by  mail. 
Advertising  as  a  source  of  sales.  What  the  sales  manager  wants 
to  know.  Reports  the  salesmen  make.  The  daily  sales  report. 
Handling  sales  letters.  The  use  of  mailing  lists.  Recording  the 
results  of  advertising.  How  to  check  advertisements.  Filing 
advertising  material.   A  word  about  contracts.    Some  legal  points. 

CHAPTER  IX 
How  Orders  are  Handled  .  • 135 

Writing  the  order.  How  orders  are  registered.  Putting  the  order 
through.  Analyzing  the  order.  Why  orders  must  be  analyzed. 
How  many  copies  must  be  made?  Three  ways  of  copying  orders. 
The  routine  of  the  order  department.  Following  an  order  through 
a  factory  office. 

CHAPTER  X 

What  You  Ought  to  Know  about  Shipping 141 

The  duties  of  the  shipping  department.  How  orders  are  shipped. 
Why  proper  packing  is  important.  Handling  freight  shipments. 
How  to  make  express  shipments.  What  it  costs  to  ship  goods. 
Tracers  and  claims.  Parcel  post,  express,  and  freight  shipments. 
Points  of  law. 

CHAPTER  XI 
The  Accounting  Department        149 

What  the  accounting  department  does.  The  difference  between 
bookkeeping  and  accounting.  Why  the  ledger  is  important. 
The  essentials  of  double-entry  bookkeeping.  How  to  take  a 
trial  balance.  Just  what  "posting"  is.  Credit  and  collection 
records.  Statements.  Making  up  the  payroll.  Cost  account- 
ing. How  accounting  machines  are  used.  Some  uses  of  the 
typewriter  in  the  accounting  department.  Statistical  machines. 
Billing  machines.  Looseleaf  and  card-index  devices.  Reports 
for  the  executive. 


CONTENTS 

CHAPTER  XII 

The  Treasurer's  Office 169 

The  functions  of  the  treasurer's  office.  What  are  "funds"?  The 
meaning  of  finance.  How  capital  is  provided.  Borrowing  money 
at  the  bank.  How  to  make  payments  by  check.  What  is  meant 
by  "notes  receivable"?  How  to  watch  collections.  How  the 
surplus  funds  are  invested.  The  yield  on  the  investment.  Elemen- 
tary principles  of  finance.  What  you  can  do  with  checks.  The 
essential  differences  between  partnerships  and  corporations. 
Life,  property,  and  accident  insurance.  Some  questions  the  treas- 
surer  has  to  answer. 

CHAPTER  XIII 

The  Manager's  Job 195 

How  do  you  work?  One  very  important  problem.  Dealing  with 
human  nature.  The  office  manager  as  an  engineer.  Planning  the 
office  for  effective  work.  The"  straight  line  "principle.  Suiting  the 
desk  to  the  work.  The  inside  of  the  desk.  Muffling  office  noises. 
The  greatest  problem  of  all.  Hiring,  placing,  and  training  em- 
ployees. Standard  practice  instructions.  Keeping  the  workers 
contented.  Ways  to  stimulate  ambition.  Making  a  game  out 
of  work.  The  office  from  the  manager's  desk.  Office  appliances 
and  labor-saving  devices.  Some  problems  in  office  efficiency 
that  the  manager  has  to  solve. 

CHAPTER  XIV 

Opportunities  for  Employment 213 

Taking  an  inventory  of  yourself.  Picking  out  your  weak  points. 
What  employers  are  looking  for.  A  few  of  the  possibilities.  Why 
it  is  worth  while  to  plan  for  your  life  work.  How  to  select  your 
employer.  Tests  which  measure  your  ability.  Where  personality 
counts  most.  Suggestions  that  may  help  you  in  getting  a  bond 
and  in  getting  a  job. 

CHAPTER  XV 

Personality  in  Business 229 

How  to  play  the  game.  What  others  have  done.  How  a  railroad 
president  started.  From  a  dollar  a  day  to  a  million  a  year.  A  big 
man's  secret  of  success.  What  happened  to  a  clock  gazer.  What 
initiative  means.  Business  maxims  that  have  helped  others. 
Your  chances  for  getting  ahead. 

zvi 


CONTENTS 

CHAPTER  XVI 

Standards  and  Tests  for  Measuring  Your  Personal 

Efficiency 239 

One  kind  of  standard.  What  standard  methods  are.  How  to  set 
a  standard.  Standard  practice  instructions.  Standards  of  accom- 
plishment. How  standards  can  increase  your  efficiency.  What 
you  can  do  with  words.  When  errors  may  be  costly.  How  to 
make  figures.  A  test  in  billing.  A  simple  mathematical  test.  An 
easy  way  to  figure  interest.  A  test  in  mental  arithmetic.  A  test 
of  mental  alertness.    How  to  test  your  ability. 

Preface     ^ 

Bibliography 263 

Index 277 

STANDARDS,  QUESTIONS,  EXERCISES,  AND  TESTS 

Accounting 161  to  168 

Analyzing 257 

Banking  175  to  178, 184  to  186, 189  to  194 

Billing 167,247,248 

Cablegrams 73,  76  to  78 

Checks  and  their  uses 176  to  178,  185,  186,  190 

Copying 39,  40 

Correspondence  and  dictation 18  to  20,  33  to  42 

Credits  and  collections 163,  165,  168 

Directories 55  to  57 

Employment 207,  208,  211,  223  to  228,  254 

Filing 95  to  98 

Financial 175  to  194 

General  review 258  to  260 

Getting  abond 224  to  226,  228 

Historical *>^ 

Insurance 182,  183,  188,  192,  193 

Investments 180,181,187,191,194 


Interest . 


.250 


Knowledge 54  to  58,  258  to  260 

Legal  points 113,  114,  128  to  134,  148 

Mailing 18  to  20 

Memory 

Mental  alertness 257,  258 

Mental  arithmetic 251,  252 

Office  appliances 163,  165,  209,  210 

Office  efficiency 206  to  212 

xvii 


CONTENTS 

Order  department 139,  140 

Partnerships  and  corporations 179  to  181,  187,  191  to  194 

Penmanship 246 

Personal  efficiency 214,  220  to  223,  242  to  260 

Personality 236  to  238 

Promissory  notes 175,  184,  189,  194 

Purchasing 112  to  114 

Rapid  calculation 248  to  252 

Reference  books 54  to  58 

Selling 128  to  134 

Shipping 19,  143  to  148 

Stenographic 33  to  42 

Stocks  and  bonds 180,  181,  187,  191,  194 

Telephone,  telegraph,  and  cable 72  to  78 

Time  differences 77,  78 

Treasurer's  office 175  to  194 

Typing 33  to  42,  244,  245 

Vocabulary 243 


OFFICE  TRAINING  AND  STANDARDS 


CHAPTER  I 

THE  DEVELOPMENT  OF  THE  OFFICE 

WHEN  all  the  inhabitants  of  the  earth  were  uncivilized 
and  gained  their  livelihood  by  means  of  hunting,  stealing, 
or  fighting,  there  was  no  necessity  for  offices.  Later 
as  the  savage  became  semicivilized,  herded  his  flocks,  and 
produced  more  than  he  could  eat,  he  found  that  he  had  some- 
thing to  trade  or  sell.  When  he  sought  to  increase  his  trade 
and  to  keep  a  record  of  his  gains  or  losses,  the  first  "office"  was 
probably  estabfished. 

This  was  so  long  ago  that  the  records  have  probably  all  been 
destroyed,  although  they  may  have  been  carefully  scratched  on 
the  clay  or  rock  walls  of  some  convenient  cave  accounting  room. 
With  improved  methods  of  stock  raising,  agriculture,  manu- 
facture, and  transportation,  the  importance  of  the  office  has 
increased  and  its  usefulness  has  become  more  and  more  widely 
recognized. 

Today  the  methods  employed  in  business  offices  are  as  far 
superior  to  the  former  "counting  rooms"  as  the  recent  inven- 
tions of  labor-saving  office  machinery  are  to  the  first  crude 
substitutes  for  human  labor.  Under  the  stress  of  competition, 
a  large  part  of  office  work  has  been  effectively  standardized, 
and  the  routine  of  the  office  will  depend  upon  the  methods 
employed  by  the  management. 

What  it  takes  to  make  an  office.  If  a  farmer  trades  a 
caK  for  some  potato  seed,  grows  200  bushels  of  potatoes,  hauls 
them  to  market,  finds  a  buyer,  and  records  the  transactions  in 
the  back  of  the  almanac,  he  has  performed  practically  all  the 
functions  of  a  business  organization.  His  office  may  be  the 
kitchen;  his  appliances  the  kitchen  table,  a  chair,  a  pencil,  and 
the  almanac;  while  he  himself  is  the  producer,  the  salesman, 
the  bookkeeper,  and  the  manager  all  in  one.    The  office  proper 

1 


2  0FFIC3  TRAINING  AND  STANDARDS 

may  therefore  be  called  the  home  of  the  business,  where  the 
required  clerical  details  are  cared  for  and  worked  out. 

Where  the  office  space  is  properly  laid  out,  Ughted,  heated, 
and  ventilated,  and  the  most  effective  and  practical  mechanical 
apphances  are  furnished  to  the  best  obtainable  human  material, 
the  highest  grade  of  results  would  naturally  be  expected  to 
follow.  It  is  the  human  element  in  any  office  that  often  plays 
a  large  part  in  the  success  or  failure  of  the  business. 

Facilitating  the  transaction  of  business.  Without  an 
office  it  would  be  impossible  to  transact  business  on  an  extensive 
scale.  Even  the  small  business  requires  a  home  and  an  organi- 
zation. The  office  for  a  time  may  be  located  in  the  garret, 
cellar,  or  kitchen;  but  as  the  business  grows,  the  best  room  in  the 
house  may  be  given  over  to  the  "machinery"  through  which  the 
poUcies  of  business  are  planned  and  carried  out. 

In  facilitating  the  transaction  of  business,  systems  of  records 
are  required,  letters  must  be  written  and  filed,  business  papers 
must  be  made  out  and  recorded,  legal  papers  are  often  needed, 
statistics  must  be  furnished,  and  money  is  continually  being 
received  and  paid  out. 

The  one-man  office.  What  is  perhaps  the  commonest  type 
of  office  organization  today  is  generally  known  as  the  "miUtarj'-" 
type.  It  is  a  development  of  the  one-man  office,  for,  as  the 
office  grows,  the  one  man  at  the  head  still  retains  unlimited 
control  over  all  the  departments.  This  plan  is  no  longer  con- 
sidered practical  in  many  large  businesses  because  of  the  diffi- 
culty in  finding  a  manager  with  the  time  and  abiUty  to  direct 
the  details  of  an  entire  organization  as  satisfactorily  as  trained 
department  heads  can.  We  shall  see  later  how  the  work  of 
these  department  heads  may  be  coordinated. 

What  a  functional  office  is.  The  originator  of  the  func- 
tional plan  of  organization  is  Frederick  W.  Taylor,  who  developed 
the  Taylor  system  of  scientific  management.  Under  Mr. 
Taylor's  plan  each  worker  has  as  few  operations  to  perform  as 
possible,  and  he  is  drilled  in  each  operation  until  he  becomes 
proficient.  There  is  usually  one  person  in  each  department 
who  supervises  this  training. 


President 

_/ G 

and 

directors 

FIGURE  1 :  This  organization  chart  shows  an  office  of  the  functional  type.  Follow 
the  lines  and  you  will  see  under  whose  authority  any  part  of  the  work  comes.  In 
this  concern  the  general  files  are  under  the  head  of  the  correspondence  department, 
who  is  responsible  to  the  office  manager;  he  in  turn  reports  to  the  general  manager. 

3 


d  OFFICE  TRAINING   AND  STANDARDS 

Another  original  thinker  has  developed  functional  organi- 
zation into  what  is  known  as  the  "  line-and-stafT  "  plan.  Under 
this  plan  the  staff  is  composed  of  experts  who  instruct  the  prin- 
cipal line  officers  as  to  the  best  methods  of  handUng  their  work, 
and  they,  in  turn,  train  the  men  under  them.  Mr.  Taylor's 
studies  were  confined  largely  to  factories.  W.  H.  Leffingwell 
has  effectively  applied  the  Taylor  methods  of  scientific  manage- 
ment to  office  work. 

Where  the  thinking  is  done.  The  office  of  any  successful 
business  must  be  the  thinking  and  directing  force  for  the  entire 
concern.  As  the  thinking  department,  the  office  must  provide 
plans,  standards,  and  instructions  for  those  in  the  operating 
departments,  and  keep  records  of  the  results. 

Twenty  men  in  the  thinking  oflBce  and  75  in  the  operating 
departments  will  often  turn  out  more  work  than  150  men  in  the 
operating  department  working  without  scientific  direction. 
Organized  work  under  the  direction  of  organized  thinking 
usually  means  a  type  of  scientific  management  that  will  pro- 
duce results  well  worth  while. 

How  details  are  handled.  The  chief  executive  does  not 
usually  spend  his  time  in  looking  after  petty  details  which  can 
just  as  well  be  taken  care  of  by  his  staff  and  fine  ofl^cers.  One 
of  his  most  important  duties  is  to  organize  the  office  to  provide 
for  the  special  instruction  of  each  employee  according  to  approved 
standards.  The  employees  should  be  surrounded  by  the  best 
mental,  moral,  and  physical  conditions.  A  just  plan  of  com- 
pensation and  promotions  should  be  instituted.  The  play 
instinct  should  be  appealed  to  in  developing  all  standards  so 
that  the  employee  will  be  as  interested  in  the  business  as  he  is 
in  his  games  and  sports. 

It  is  obvious  that  a  multitude  of  details  must  be  handled  in 
the  most  scientific  method  possible;  otherwise  the  office  force 
will  be  swamped  in  a  confusion  of  poorly  understood  tasks. 
Aside  from  the  clerical  work  connected  with  the  buying,  selHng 
and  accounting  departments  there  is  the  dictating,  typing, 
mailing,  and  filing  of  correspondence;  the  carrying  of  messages; 
the  handling  of  many  kinds  of  quotations,  invoices,  clippings, 
tariffs,  legal,  and  business  papers. 


THE  DEVELOPMENT  OF  THE  OFFICE  5 

The  importance  of  letter  writing.  Letters  and  business 
papers  must,  of  course,  be  used  in  business  unless  the  transac- 
tions are  confined  to  a  limited  scope  and  area,  but  when  trans- 
actions take  place  at  long  distances,  the  only  practical  method 
is  by  correspondence.  Even  when  the  long  distance  telephone 
and  traveling  salesmen  are  employed,  it  is  usually  necessary  to 
put  the  contracts  in  writing  and  to  answer  many  questions  by 
mail,  requiring  one  or  more  stenographers. 

Orders  are  confirmed  or  claims  adjusted  by  letters,  which 
are  often  the  only  records  of  the  dealings.  Announcements  are 
made,  prices  quoted,  estimates  furnished,  promises  given,  cir- 
culars distributed,  prospects  made  customers,  purchases  com- 
pleted, and  collections  made  possible  through  correspondence. 

Why  records  must  be  kept.  Frequently  the  importance 
of  keeping  business  records  is  not  appreciated  until  some  special 
information  which  cannot  be  found  is  badly  needed,  such  as  the 
price  paid  for  an  order  of  goods,  figures  previously  quoted, 
former  selling  prices,  and  so  on.  Reference  to  letters  or  other 
business  papers  is  often  necessary,  letters  of  inquiry  must  be 
followed  up,  prospects  supplied  with  information,  comparisons 
made,  and  conclusions  drawn. 

The  records  for  these  purposes  not  only  must  be  kept  in 
convenient  and  legible  form,  but  they  must  also  be  filed  where 
they  may  be  found  quickly  when  needed.  Many  employees 
are  required  for  this  work  in  large  offices  and  fixed  standards 
of  accomplishment  are  usually  necessary  in  order  to  get  the 
desired  results  without  loss  of  time. 

Thus  we  see  that  the  office  is  the  faciUtating  force  which 
makes  possible  the  successful  running  of  the  entire  organiza- 
tion,   consisting   of  producing,  administration,  and  marketing. 

Showing  the  results.  The  accounting  department  is  prob- 
ably the  most  important  of  the  administrative  departments. 
It  handles  the  important  functions  of  recording,  tabulating, 
and  reporting  the  results  of  all  transactions.  These  reports 
show  the  past  successes  or  failures,  and  help  to  determine  the 
future  activities  of  the  company. 

For  example,  the  cost  figures  show  whether  prices  quoted 
ajtd  obtained  are  high,  low,   or  normal;    whether  particular 


6  OFFICE  TRAINING  AND  STANDARDS 

departments  are  falling  below  or  rising  above  the  average  in 
effectiveness;  and  whether  expenses  are  in  proportion  to  the 
income  in  comparison  with  other  periods. 

Producing  the  goods.  The  production  division  of  the 
business  produces  the  article  to  be  sold.  It  may  be  purchased 
from  the  wholesaler,  the  factory,  or  the  farmer.  In  some  cases 
the  raw  material  is  purchased,  manufactured,  and  sold  to  the 
wholesale  or  the  retail  trade.  Some  concerns  have  no  manu- 
facturing departments,  and  the  purchasing  department  corre- 
sponds to  the  production  end  of  the  business.  Banks  are  con- 
tinually opening  up  new  Unes  of  credit  and  enlarging  their 
resources  for  the  purpose  of  facilitating  business.  Insurance 
companies  through  their  actuarial  departments  are  providing 
the  material  by  means  of  which  new  business  can  be  prof- 
itably secured  by  the  salesmen. 

Selling  the  product.  The  finished  product,  no  matter  from 
what  source  it  is  obtained,  is  turned  over  to  the  sales  department 
for  marketing.  It  now  becomes  the  duty  of  the  sales  manager 
and  his  force  to  dispose  of  the  product  at  a  profit  in  order  to 
maintain  the  business. 

More  or  less  stenographic,  typewriting,  and  clerical  work  is 
required  in  the  related  correspondence,  advertising,  and  account- 
ing departments.  In  all  business,  however,  the  two  prime 
factors  of  buying  and  selling  constitute  the  basis  of  the  business. 

The  chief  executive's  function  is  to  coordinate  the  work  of 
all  the  departments  and  to  keep  the  whole  organization  running 
smoothly.  It  is  his  duty  also  to  look  after  the  welfare  of  the 
employees  under  his  charge. 

When  the  proper  relation  between  the  management  and 
the  employee  is  more  fully  understood,  there  will  be  more 
enthusiasm  all  along  the  line.  It  is  possible  to  make  business 
a  fascinating  game  in  which  united  team-work  makes  for  suc- 
cess and  where  winning  the  game  brings  interest  and  efficiency. 
When  employees  realize  that  the  prosperity  of  the  firm  depends 
upon  their  efforts  and  that  advancement  and  continued  employ- 
ment must  depend  upon  the  united  effort  of  the  employer  and 
employees,  they  will  take  an  added  interest  in  their  work  and 
the  results  obtained  by  it. 


THE  DEVELOPMENT  OF  THE  OFFICE  7 

HISTORICAL  STANDARDS 

The  development  of  the  office 

1.  The  first  "office"  was  established  when  men  began  to  try  to  increase 
their  trade  and  to  record  their  gains  and  losses. 

2.  The  first  "office"  records  were  probably  scratched  on  cave  walls. 

3.  With  the  increased  civilization  of  man  and  the  growth  of  trade,  the 
office  has  become  more  and  more  important  as  a  means  of  facilitating  business 
transactions. 

4.  Not  all  offices  are  located  in  city  skyscrapers. 

5.  A  farmer's  kitchen  may  be  his  office. 

6.  The  office  is  the  home  of  the  business. 

7.  The  most  effectively  equipped  office  may  be  expected  to  produce  the 
best  results. 

8.  Nevertheless,  the  human  element  in  the  office  is  often  responsible  for 
the  success  or  failure  of  a  business. 

9.  The  one-man  office  is  an  office  where  the  office  force  consists  of  one 
individual.  A  farmer's  office  is  a  one-man  office.  So  is  a  dentist's  or  a  doctor's 
in  most  instances. 

10.  In  the  military  type  of  office  one  man  has  unlimited  control  over  all 
departments. 

11.  The  military  type  is  considered  impractical  by  some  business  men 
because  it  is  hard  to  find  a  man  fitted  to  direct  all  the  departments  with  equal 
effectiveness.  "^' 

12.  The  functional  plan  of  organization  was  developed  by  F.  W.  Taylor. 

13.  Under  the  functional  plan  of  organization,  each  worker  has  only  one 
or  at  most  a  few  operations  to  perform. 

14.  In  a  functional  organization  one  person  in  each  department  super- 
vises the  training  of  the  workers. 

15.  The  "  line-and-staff "  plan  of  organization  is  a  development  of  the 
functional  tj^pe. 

16.  The  staff  is  composed  of  experts  who  instruct  the  line  officers  (depart- 
ment heads),  who  train  the  workersunTler  them. 

17.  Mr.  Taylor's  work  was  applied  largely  to  machine  shops  and  factories. 

18.  W.  H.  Leffingwell  was  the  first  to  adapt  Mr.  Taylor's  methods  to 
office  work. 

19.  The  office  of  the  business  is  like  the  mainspring  of  a  watch;  it  contains 
the  directing  force  of  the  business. 

20.  The  office  provides  plans,  standards,  and  instructions  for  the  operating 
departments. 

21.  Scientific  direction  often  increases  output  100%  or  more. 

22.  Executives  should  not  waste  their  time  on  small  details  that  someone 
else  can  do  equally  well. 

23.  The  executive  should  try  to  make  business  a  game  for  his  employees. 

24.  There  is  more  or  less  clerical  work  required  in  nearly  every  depart- 
ment of  a  business.     Correspondence  must  be  dictated,  tj^ped,  mailed,  and 


8  OFFICE  TRAINING  AND  STANDARDS 

filed.    Messages  must  be  carried;  quotations,  invoices,  clippings,  tariffs,  and 
legal  papers  handled.    All  these  operations  are  performed  in  the  office. 

25.  The  accounting  department  records,  tabulates,  and  reports  the  re- 
sults of  all  transactions. 

26.  The  production  division  produces  the  article  to  be  sold. 

27.  The  sales  department  sells  the  finished  product. 

28.  Buying  and  selling  are  the  fundamental  factors  of  any  business. 

29.  The  finished  product  must  be  sold  at  a  profit  to  make  it  possible  for 
the  business  to  continue. 

30.  If  employees  realize  that  they  can  to  a  large  extent  "make  or  break" 
a  business,  they  will  take  an  added  interest  in  their  work. 

STANDARD  QUESTIONS 

The  development  of  the  office 

1.  Have  there  always  been  offices? 

2.  When  did  trading  begin? 

3.  When  was  the  first  office  established? 

4.  Were  the  first  records  kept  in  books?    Why  or  why  not? 

5.  How  were  the  first  records  kept? 

6.  Is  the  office  becoming  more  or  less  important?    Why? 

7.  Are  all  offices  located  in  city  office  buildings? 

8.  Can  you  think  of  any  offices  that  are  not?    Where  are  they  located? 

9.  Would  you  expect  to  produce  letter  results  in  an  effectively  equipped 
office  or  in  one  poorly  equipped?         ^ 

10.  Is  there  any  element  in  the  office  as  important  as,  or  more  important 
than,  the  equipment?    If  so,  what? 

11.  Wha^  is  a  one-man  office? 

12.  Do  you  know  of  any  one-man  office?    If  so,  what  business  is  the  owner 
engaged  in? 

13.  What  are  the  characteristics  of  the  military  type  of  organization? 

14.  Is  there  any  objection  to  the  military  type  of  organization?    If  bo, 
what? 

15.  Who  originated  the  functional  plan  of  organization? 

16.  What  are  the  characteristics  of  a  functional  organization? 

17.  What  is  the  "line-and-staff"  plan  of  organization? 

18.  In  what  field  did  Frederick  W.  Taylor  do  most  of  his  work? 

19.  Who  adapted  Mr.  Taylor's  plan  to  office  management? 

20.  How  is  the  office  related  to  the  rest  of  the  business? 

21.  Name  several  kinds  of  work  that  are  carried  on  in  the  office. 

22.  Into  what  three  branches  is  business  divided? 

23.  What  is  the  chief  function  (a)  of  the  accounting  department?  (b)  of 
the  production  division?  (c)  of  the  sales  department? 

24.  What  are  the  two  fundamental  factors  of  any  business? 

25.  To  what  extent  does  the  success  of  a  business  depend  on  the  employees? 


CHAPTER  II 

HANDLING  CORRESPONDENCE 

THE  letters  received  by  most  business  concerns  go  through 
many  processes  before   they  finally  reach  the  files.     A 
letter  may  be  handled  by  one  person,  as  in  a  small  business, 
or  by  several  persons,  as  in  a  large  mail-order  house.    These 
processes  naturally  divide  into  four  parts,  as  follows: 

1.  Receiving 

2.  Answering 

3.  Mailing  our  answer 

4.  Filing  ♦ 

In  this  chapter  we'll  see  what  happens  to  the  letters  before 
they  are  answered,  and  what  becomes  of  them  after  they  are 
answered.  The  next  chapter  will  tell  us  how  they  are  answered, 
and  in  Chapter  VI  we  shall  learn  effective  methods  of  filing. 

How  the  incoming  mail  is  handled.  As  soon  as  received, 
the  mail  is  usually  sent  direct  to  the  mail-opening  clerk  to  be 
opened  and  sorted  for  distribution  to  the  proper  departments. 
In  the  mail-opening  department  of  one  firm  the  unopened  letters 
are  first  sorted  to  separate  those  letters  that  are  specifically 
addressed  to  some  person  from  those  addressed  to  the  house. 
A  boy  then  immediately  delivers  these  letters  to  the  people 
addressed,  thus  eliminating  any  delay. 

Meanwhile  the  mail  addressed  to  the  house  is  going  through 
a  number  of  processes,  in  this  order: 

(a)  opening 

(b)  sorting  and  classifying 

(c)  delivering  to  the  proper  departments 

How  the  mail  is  opened.  In  a  business  where  the  volume 
of  mail  is  small  it  is  usually  opened  by  hand.     In  this  case  care 


10  OFFICE  TRAINING  AND  STANDARDS 

should  be  taken  not  to  cut  through  checks  or  other  enclosures. 
In  medium  sized  offices,  where  from  150  to  200  letters  are  re- 
ceived, a  small  hand-operated  mail-opening  machine  is  often 
used  as  a  time  saver.  In  large  offices,  where  a  large  volume  is 
regularly  handled,  an  electric  mail-opening  machine  is  found 
useful.  Whatever  method  of  opening  mail  is  used,  the  object 
is  to  open  the  envelop  as  quickly  and  carefully  as  possible,  and 
to  get  the  mail  sorted  with  the  least  possible  delay. 

Inspecting  the  letters.  Immediately  after  opening  the 
mail,  see  that  each  letter  is  properly  signed,  that  it  contains  the 
complete  address,  that  no  enclosures  are  missing,  and  that  there 
has  been  no  unusual  delay  from  the  time  the  letter  was  written 
until  the  date  of  receipt.  Some  firms  make  it  a  rule  not  to 
destroy  the  envelop  but  to  pin  it  to  the  letter  or  papers,  as  it 
may  contain  the  only  complete  address,  or  it  may  be  needed  to 
show  when  the  letter  was  mailed. 

What  happens  to  enclosures.  The  enclosure  is  then  fast- 
ened to  the  letter  with  a  pin  or  clip.  If  any  enclosure  is  missing, 
it  is  noted  on  the  letter. 

Since  the  government  does  not  stamp  the  date  of  the  receipt 
of  letters  at  the  post-office,  it  is  desirable  sometimes  to  note 
the  time  of  receipt  at  the  office.  In  the  case  of  important  delayed 
orders,  for  instance,  it  is  occasionally  necessary  to  prove  that 
the  letter  was  not  mailed  when  written  or  that  it  was  delayed 
in  transit.  Clock-dating  machines  are  used  for  the  purpose  of 
recording  the  hour  as  well  as  the  date  of  receipt.  Some  firms 
are  satisfied  to  stamp  merely  the  d'ate  the  letters  arrive.  Each 
concern  decides  this  practice  for  itself,  of  course. 

It  is  helpful  to  watch  each  movement  in  order  to  economize 
time  in  handling  mail.  If  the  clerk  forms  the  habit  of  opening, 
checking,  and  dating  each  letter  as  soon  as  opened,  she  will  be 
repeating  many  unnecessary  motions.  While  she  is  using  the 
date  stamp,  all  the  letters  should  be  stamped  at  once,  each 
operation  being  carried  out  without  any  lost  motion. 

The  special  mail-opening  table  shown  on  page  15  (Figure  3) 
was  devised  after  several  careful  tests  were  made  to  ascertain 
the  most  effective  way  of  opening  mail.  The  sunken  baskets 
and  pincushions  eliminate  a  great  deal  of  useless  motion. 


1 

Opening 

1- 

Incoming  mail   " 

Classifying 
Distributing 
Making  a  record  of  referred  correspondence 

Making  assignment  slips 
Keeping  weekly  work  record 

Stenographic 
work 

Furnishing  stenographic  supplies 

Inspecting  work 

Following  up   work 

Systems 

Alphabetical 
Geographical 
Numerical 
Topical 

Filing 

Correspondence  requisitions 

The  work  of  the 

correspondence  < 

department 

Follow-up  file 
Document  filing 
Transferring  correspondence 

"Messenger  service 

Interiiouse         ^ 
communications 

Basket  system 
Interhouse  notes 

'collecting 
Folding  and  enclosing 

Outgoing   mail  < 

Stamping 

Classifying 

Routing 

Telephone  and 

Keeping  records  of  outgoing  calls 

telegraph 
service 

Keeping  records  of  incoming  calls 

Information       •< 

Handling  callers 

Organizing  the  messenger  service 

FIGURE  2:     You  will  often  find  that  by  arranging  data  in  this  fashion,  you  can 

make  it  easier  not  only  to  analyze  the  data,  but  also  to  remember  the  important 

details.     This  outline  of  the  work  of  the  correspondence  department  shows  at  a 

glance  the  exact  relation  of  any  part  of  the  work  to  any  other  part. 

11 


12  OFFICE  TRAINING  AND  STANDARDS 

How  to  classify  the  mail.  After  the  mail  is  opened  and 
checked  to  see  that  no  enclosures  are  missing,  there  are  two  pro- 
cedures. Some  firms  immediately  proceed  to  classify  the  mail 
according  to  departments,  while  others  divide  the  opened  mail 
into  two  parts — "cash  mail"  and  ''non-cash  mail." 

Cash  mail,  as  the  name  indicates,  is  letters  containing  remit- 
tances. The  clerk  places  these  in  one  pile,  and  in  another  pile 
she  places  all  letters  which  do  not  contain  remittances. 

The  advantage  of  separating  the  two  kinds  of  mail  is  that 
the  non-cash  mail  can  be  classified  and  delivered  at  once  without 
waiting  for  the  cash  mail  to  be  sorted  and  Hsted.  One  clerk 
takes  the  letters  which  do  not  contain  any  remittances  and  at 
once  starts  to  classify  them  according  to  departments.  Each 
letter  is  placed  in  the  group  where  it  belongs  for  distribution. 
On  page  15  is  shown  how  three  concerns  sort  their  mail. 

The  clerk  who  sorts  the  mail  should  be  able  to  tell  at  a 
glance  to  which  department  each  letter  should  be  sent.  A  letter 
containing  an  order  will  go,  of  course,  to  the  order  department, 
a  complaint  letter  to  the  complaint  department,  a  letter  asking 
for  an  extension  of  time  on  a  bill  to  the  collection  department, 
a  request  for  information  about  a  former  employee  to  the  man- 
ager, a  letter  quoting  prices  of  goods  used  by  the  concern  to 
the  purchasing  department,  and  so  on.  When  the  letter  must 
pass  through  several  departments,  it  is  so  marked  that  the 
proper  data  may  be  entered  or  attached  from  the  time  it  is 
received  until  it  is  answered.  When  all  the  mail  is  classified, 
the  messenger  boy  deUvers  it  to  the  various  departments. 

Handling  the  cash  mail.  Another  clerk  takes  the  cash 
mail  and  enters  the  various  items  on  a  hst.  Some  firms  group 
the  items  on  the  hst  of  cash  mail  into  classes,  so  that  when  the 
totals  are  footed  the  cash  receipts  for  each  class  are  shown  at 
a  glance;  this  simplifies  the  bookkeeping.  Other  firms  simply 
sort  the  remittances  into  city  checks,  out-of-town  checks,  money- 
orders,  and  currency.  After  the  remittances  are  Hsted  and 
sorted,  they  are  sent  to  the  cashier,  who  indorses  and  deposits 
them  in  the  bank  the  same  day  they  are  received. 

Besides  the  operations  connected  with  receiving  the  incoming 
mail,  this  department  also  sends  out  the  outgoing  mail. 


HANDLING  CORRESPONDENCE  13 

Addressing  letters  correctly.  One  of  the  most  important 
duties  connected  with  sending  out  mail  is  to  see  that  it  is  addressed 
correctly.  Over  10,000  misdirected  letters  are  sent  to  the  dead- 
letter  office  daily.  Last  year  this  office  handled  over  10,000,000 
such  letters  and  packages,  containing  more  than  $2,250,000  in 
checks,  drafts,  money  orders,  and  cash.  Some  of  this  mail  was 
finally  delivered  to  the  owners  because  the  inside  address  was 
plainer  than  the  one  on  the  outside.  Counting  the  cost  of 
postage,  advertising  letters,  and  the  original  cost  of  getting 
out  the  mail,  you  can  estimate  in  this  one  item  a  little  of  the 
cost  of  carelessness. 

Some  of  these  letters  and  packages  are  mailed  without 
sufficient  postage  or,  indeed,  without  any  postage  at  all.  Others 
have  no  return  address  on  the  outside.  With  many,  a  part  of 
the  address  is  missing  or  incorrectly  given.  It  is  bad  enough 
to  omit  the  name  of  the  state,  but  worse  to  write  down  the 
wrong  state.  There  are  27  Clevelands  and  28  Washingtons  in 
the  United  States;  it  is  impossible  for  the  mail  clerk  always  to 
know  where  to  send  your  letter  if  the  state  is  not  named. 

Frequently  the  use  of  abbreviations  causes  trouble.  Nev. 
may  be  written  to  look  like  Neb.,  N.  J.  like  N.  Y.,  Col.  like 
Cal,  Ind.  like  Md.,  and  Vt.  like  Va.  Some  of  these  difficulties 
may  be  avoided  by  writing  the  full  name  of  the  state  or,  if  you 
must  abbreviate,  at  least  abbreviate  correctly. 

The  sender's  return  address  should  be  the  same  on  the 
envelop  as  on  the  letter  heading.  The  letter  address  should 
agree  with  the  one  on  the  envelop,  whether  the  ''window  en- 
velop" is  used  or  not.  Wliere  a  part  of  the  address  is  missing 
it  can  usually  be  corrected  by  referring  to  the  envelop,  the  letter 
file,  directories,  postal  guides,  or  gazetteers. 

Many  large  offices  now  use  the  addressing  machine  for  all 
correspondents  requiring  10  or  more  letters  a  year.  For  a 
less  number  it  is  found  to  be  more  economical  to  use  the  type- 
writer than  to  make  the  stencils  or  plates  used  in  the  machines. 
Addressing  machines  may  be  used  for  addressing  envelops, 
wrappers,  bills,  folders,  statements,  notices,  receipts,  and  labels. 

Some  machines  automatically  handle  the  name  plates  and 
return  them  to  the  filing  drawer  in  the  proper  order,  at  the 
same  time  skipping  any  names  not  desired.     One  machine  will 


14  OFFICE  TRAINING  AND  STANDARDS 

print  many  thousands  in  a  day,  making  it  possible  for  large 
firms  like  the  Curtis  Pubhshing  Company  to  get  out  millions 
of  papers  in  a  short  time. 

Kow  to  fold  a  business  letter.  Letters  are  folded  by 
hand  in  small  offices.  In  folding  an  ordinary  business  letter 
fold  upward  from  the  bottom,  bringing  the  lower  edge  to  within 
about  half  an  inch  from  the  top.  Make  two  folds  from  left  to 
right,  allowing  the  right-hand  edge  to  project  about  half  an 
inch.  This  leaves  half  an  inch  square  at  the  upper  right-hand 
corner,  where  you  grasp  the  letter  with  your  thumb,  and  it  will 
easily  open  with  the  right  side  up.  Insert  the  folded  letter  in 
the  envelop  without  turning  the  letter  over.  For  large  envelops 
the  paper  should  be  folded  twice  from  the  bottom  up,  leaving 
a  small  margin  at  the  top.  Of  course  when  ''window  envelops" 
are  used  it  is  necessary  to  fold  the  letter  so  that  the  address  will 
fit  the  window.  The  diagram  on  page  16  shows  the  standard 
instructions  for  folding  letters  to  fit  window  envelops  that  one 
large  concern  uses. 

Firms  sending  out  from  500  to  1,000  letters  a  day  often  find 
it  an  economy  to  use  a  folding  machine.  It  is  possible  to  fold 
40  000  pieces  a  day  at  a  cost  of  ten  cents  a  thousand,  while  the 
the  cost  by  hand  folding  would  run  from  30  to  40  cents  a  thou- 
sand folds.  In  using  this  machine  it  is  necessary  to  keep  the 
envelops  stacked  in  the-  same  order  as  the  folded  letter.  The 
same  care,  however,  is  needed  in  hand  folding,  as  many  letters 
may  be  placed  in  the  wrong  envelops  by  inexperienced  or  care- 
less help,  causing  possible  embarrassments. 

Sealing  and  stamping  envelops.  Where  the  amount  of 
outgoing  mail  is  not  large  the  sealing  and  stamping  are  usually 
done  by  hand.  The  envelops  are  arranged  so  as  to  expose  only 
the  gummed  flaps.  By  passing  a  moist  sponge  over  the  surface 
the  letter  can  then  be  quickly  sealed  by  hand.  Machines  are 
now  in  use  which  will  seal  about  5,000  letters  an  hour. 

It  requires  care  in  either  method  not  to  use  too  much  or 
too  little  moisture  on  the  gummed  surface  or  the  letters  will 
not  be  securely  sealed.  The  same  thing  is  true  in  regard  to  the 
stamping  of  mail.  Some  machines  which  can  be  run  by  motor 
will  seal  and  affix  the  stamp  at  the  same  time. 


FIGURE  3:  This  girl  can  open,  pin,  FIGURE  4:  This  girl  is  sorting  mis- 
and  sort  310  letters  an  hour  by  using  cellaneous  letters  on  this  pecuHar  looking 
this    special    table    with    sunken   trays.       rack    for    distribution   to   departments. 


FIGURE  5:    Just  imagine  how  much  mail  this  concern  receives!     Here  are  seven 

men  and  boys  sorting  mail  for  the  various  departments.     In  order  to  work   fast 

each  worker  must,  of  course,  know  just  where  each  letter  goes. 

15 


uiw-^' 


§mr^ 


FIGURE  6:  This  is  the  mailing  room  of  one  office  where  the  mail  is  comparatively 
heavy.  As  you  see,  the  mailing  machinery  shown  here  makes  it  possible  to  get  the 
mail  out  on  time.     Each  piece  of  mail  is  weighed  in  order  not  to  waste  postage. 


Instructions  for  Folding  Letters  to  Fit  Window  Envelops 


Figure  2 


Fold  bottom  over  to  top  of  saluta- 
tion as  shown  in  Figure  1 ;  this  marks 
line  where  second  fold  is  to  be  made. 

Pick  up  letter  as  described  by  Fig- 
ure 2.  holding  firmly  with  left  hand 
while  making  fold  with  right,  moving 
hand  from  left  to  right  as  mdicatcd 
by  arrow  in  Figure  3. 

Hold  letter  in  same  position  with 


left  hand  while-  grasping  under  edge 
with  right  vsee  Figure  4)  Then  turn 
address  side  down  preparatory  to 
placing  in  e»velop. 

EnvclnpsJBhould  be  placed  face 
dowinvMrd^On^sKlf  of  pile  of  letters, 
with  fLTpyjjjt  to  letters  as  shown  in 
illustratio^^B Insert  enclosures  as  in 
Figur 


n  won 


FIGURE  7:  How  easy  it  is  to  learn  from  pictures.  These  simple  sketches  are 
standard  practice  instructions  for  folding  letters  to  fit  window  envelops.  The 
office  workers  who  use  them  learn  quickly  how  to  do  the  work  in  the  standard  way. 


HANDLING  CORRESPONDENCE  17 

The  method  of  stamping  letters  by  hand  has  been  recently 
standardized  and  the  output  raised  from  14  letters  a  minute  to 
84  a  minute.  The  stamps  are  usually  purchased  in  sheets  of 
100.  The  ordinary  clerk  requires  about  one  minute  to  tear  the 
sheet  of  100  stamps  into  10  strips.  Under  the  standard  method 
10  sheets,  or  1,000  stamps,  can  be  prepared  in  the  same  time. 

As  many  as  10  sheets  of  stamps  can  be  handled  at  one  time 
by  folding  and  creasing  each  perforated  line  between  the  stamps. 
This  requires  9  folds  in  each  direction,  or  18  in  all.  First  the 
wide  strip  of  white  unperforated  paper  should  be  folded  and 
torn  off.  The  edges  may  more  easily  be  kept  even  by  folding 
the  middle  line  first  and  following  in  order  from  there  to  the 
edge.  Make  a  roll  about  one  inch  in  diameter  of  the  10  sheets, 
the  mucilage  side  out  and  the  roll  the  length  of  the  long  side  of 
the  sheet.  Hold  it  in  place  with  a  small  rubber  band  to  keep 
it  from  unrolling.  The  first  row  of  stamps  or  10  strips  may  now 
be  broken  off  just  as  you  would  break  a  piece  from  a  stick. 
The  entire  10  rows  of  ten  strips  each  can  be  broken  off  and  un- 
rolled in  one  minute. 

How  the  strips  of  stamps  are  used.  Place  the  envelops 
one  above  the  other  in  straight  piles  in  front  of  you.  Put  the 
stamps  mucilaged  side  up  and  a  moist  sponge  at  your  right  side. 
Be  sure  the  sponge  is  not  too  wet  or  the  mucilage  will  be  washed 
off.  Take  the  end  of  one  strip  in  the  left  hand  and  moisten  the 
strip  with  one  stroke  of  the  sponge  in  the  right  hand.  Affix 
the  stamp  with  the  left  hand,  and  press  it  in  place  with  the  right. 
At  the  same  time  twist  the  stamp  loose  from  the  strip  with  the 
left  hand  and  shove  the  envelop  ahead  with  the  right  hand, 
leaving  the  next  envelop  clear  for  stamping. 

This  method  has  increased  the  efficiency  of  stamping  letters 
over  300%,  raised  the  salaries  of  the  employees,  and  has  done 
away  with  the  necessity  of  purchasing  expensive  stamping 
machinery  except  perhaps  in  the  largest  offices. 

Care  must  be  taken  that  the  correct  amount  of  postage  is 
used  on  all  classes  of  mail.  This  is  particularly  true  in  regard 
to  foreign  mail.  It  is  estimated  that  an  immense  amount  of 
foreign  trade  is  lost  by  this  little  bit  of  carelessness.  All  foreign 
countries  collect  twice  the  amount  of  postage  due  and  it  is 


18  OFFICE  TRAINING   AND  STANDARDS 

claimed  that  many  foreign  merchants  will  not  redeem  such 
mail.  They  at  least  cannot]  have  a  very  friendly  feeling  toward 
a  firm  which  sends  in  a  letter  with  10  or  20  cents  due  because 
the  mailing  clerk  thoughtlessly  started  the  letter  with  the  usual 
two-cent  stamp.  Every  office  should  have  printed  postal 
regulations  regarding  the  rates  of  postage  for  all  classes  of  mail. 

Mailing  the  letters.  It  is  possible  to  make  mistakes  even 
after  the  mail  has  been  perfectly  prepared  for  posting.  If 
important  mail  is  posted  a  few  minutes  after  the  last  fast  mail 
train  for  the  day  has  departed,  there  may  be  a  delay  of  12  hours 
in  its  delivery.  All  valuable  mail  should  be  insured  or  registered, 
since  in  the  event  of  loss  or  non-delivery  your  firm  may  be  held 
responsible,  even  if  the  goods  were  paid  for  in  advance,  because 
the  order  called  for  safe  delivery. 

Sometimes  a  few  hours  gained  in  the  receipt  of  a  letter  will 
be  of  great  importance,  and  you  can  insure  immediate  delivery 
from  any  United  States  postoffice  by  placing  on  the  envelop  a 
special  delivery  stamp.  If  you  cannot  obtain  such  a  stamp, 
you  can  put  10  cents  additional  postage  on  the  letter  and  write 
on  the  envelop  "special  delivery." 

Packages  of  value  may  also  be  sent  c.  o.  d.  if  you  are  not 
sure  of  the  credit  of  the  customer.  For  a  small  fee  the  post- 
office  department  will  collect  the  amount  and  return  it  to  you 
in  the  form  of  a  postoffice  money  order.  If  it  is  important  for 
you  to  know  whether  your  letter  was  received  at  a  certain  time, 
you  can  register  it  and  demand  a  return  receipt.  To  get  this 
receipt  you  must  write  or  stamp  across  the  face  of  the  envelop 
"Return  receipt  requested." 

STANDARD  QUESTIONS 

Opening,  sorting,  and  distributing  incoming  mail 

1.  How  is  mail  usually  opened  in  a  small  office? 

2.  How  may  time  be  saved  where  150  to  200  letters  a  day  are  received? 

3.  What  plan  is  followed  when  a  large  amount  is  received? 

4.  What  care  must  always  be  taken  in  opening  letters? 

5.  After  the  letters  are  removed  from  the  envelop,  what  do  you  do  first? 

6.  How  do  you  check  up  enclosures? 

7.  What  would  you  do  in  case  the  enclosure  was  missing? 

8.  What  do  you  do  with  remittances  enclosed? 


HANDLING  CORRESPONDENCE  19 

9.  Who  deposits  the  checks  in  the  bank? 

10.  Why  must  you  be  familiar  with  all  forms  of  remittances? 

11.  How  do  you  sort  the  letters? 

12.  What  notations  should  be  made  on  the  letters? 

13.  When  should  the  envelop  not  be  destroyed? 

14.  When  should  the  date  of  receipt  be  stamped? 

15.  Why  is  it  sometimes  important  to  stamp  the  clock  time  of  receipt  as 
well  as  the  date? 

16.  To  what  department  would  you  send  an  order  for  goods? 

17.  To  what  department  would  you  send  a  letter — 

a.  complaining  of  the  receipt  of  damaged  goods? 

b.  giving  references  as  to  financial  standing? 

c.  asking  for  an  extension  of  time  for  payment  of  a  bill? 

d.  asking  for  a  report  on  a  former  employee? 

e.  giving  quotations  for  the  sale  of  goods? 

f .  asking  for  quotations  on  the  net  price  of  goods? 

g.  applying  for  a  position  with  the  company? 

h.    applying  for  the  purchase  of  stock  in  the  company? 

i.    complaining  of  the  non-receipt  of  goods? 

j.    giving  instructions  regarding  future  shipments? 

k.    containing  remittance  for  the  payment  of  a  sight  draft? 

18.  What  is  meant  by  "under  separate  cover?" 

19.  How  would  you  identify  letters  where  plain  paper  and  envelops  are 
used  and  the  signature  or  address  is  lacking? 

20.  Why  is  it  necessary  for  employees  to  standardize  all  their  operations 
in  opening,  sorting,  and  distributing  mail? 

MAILING  STANDARDS 

Enclosures  and  remittances 

1.  Never  enclose  stamps  loosely.    Wrap  them  in  waxed  paper. 

2.  It  is  unsafe  to  remit  small  coins,  even  in  a  "coin  card." 

3.  You  can  send  currency  by  registered  mail  where  there  is  no  postal 
money  order  office. 

4.  The  postal  money  order  is  best  for  small  towns  without  bank  or 
express  offices. 

5.  Express  money  orders  are  negotiable  and  good  for  small  amounts. 

6.  A  postal  money  order  is  payable  only  at  the  office  on  which  it  is 
drawn. 

7.  Express  money  orders  are  cashed  at  banks  or  any  express  office  of 
the  company. 

8.  Postal  money  orders  can  be  indorsed  only  once. 

9.  Express  money  orders  may  be  indorsed  several  times. 

10.  Postal  money  orders  cost  from  3  cents  for  S2.50  to  30  cents  for  $100. 

11.  Express  money  orders  cost  the  same  as  postal  money  orders. 


20  OFFICE  TRAINING   AND    STANDARDS 

12.  The  United  States  Government  is  responsible  for  one,  the  express 
cmpany  for  the  other. 

13.  The  government  is  responsible  for  an  amount  not  to  exceed  $50  on 
registered  letters. 

14.  It  will  pay  losses  not  to  exceed  $100  on  insured  packages. 

15.  It  costs  10  cents  to  send  $100  by  bank  draft. 

16.  It  costs  30  cents  to  send  $100  by  express  or  postal  money  order. 

17.  It  costs  85  cents  to  send  $100  by  telegraph  transfer,  plus  the  regular 
rate  for  a  15-word  message. 

18.  It  costs  10  cents  to  send  $100  by  registered  letter. 

19.  It  costs  25  cents  to  send  $100  by  insured  parcel  post. 

20.  The  cheapest  way  to  remit  $2.50  is  by  money  order. 

21.  The  cheapest  way  to  remit  $25  is  by  bank  draft  or  by  personal  check 
if  exchange  is  not  required. 

22.  The  cheapest  way  is  not  always  the  best  way. 

23.  The  best  way  to  remit  $50  in  currency  is  by  registered  letter. 

24.  The  best  way  to  remit  $5,000  in  currency  is  by  express. 

25.  It  would  not  be  wise  to  send  $60  by  registered  letter. 

26.  It  would  not  be  wise  to  send  $60  by  money  order. 

27.  It  would  not  be  wise  to  send  $6,000  by  express. 

28.  The  largest  express  money  order  issued  is  $50. 

29.  The  largest  postal  money  order  issued  is  $100. 

30.  If  money  is  lost  or  destroyed  it  cannot  be  returned  even  if  insured. 

STANDARD  QUESTIONS 

Handling  outgoing  mail 

1.  How  is  mail  addressed  by  machinery? 

2.  Describe  the  best  method  of  folding  a  business  letter  by  hand. 

3.  How  are  letters  folded  by  machinery? 

4.  Why  are  so  many  letters  sent  each  year  to  the  dead-letter  office? 

5.  Why  should  special  care  be  taken  to  stamp  mail  properly? 

6.  How  would  you  instruct  an  office  boy  with  regard  to  sealing  letters? 

7.  How  would  you  instruct  an  office  boy  with  regard  to  stamping  letters? 

8.  When  is  it  desirable  to  register  mail? 

9.  How  would  you  send  a  letter  by  special  delivery? 
10.    What  is  meant  by  a  "window  envelop"? 


CHAPTER  III 

STENOGRAPHIC  WORK  AND  STANDARDS 

BEFORE  the  invention  of  typewriters,  all  letters  were  writ- 
ten by  hand,  which  took  a  great  deal  of  time.  Although 
some  very  small  concerns  may  feel  that  their  business 
is  not  large  enough  to  warrant  the  use  of  a  typewTJter,  yet  most 
business  men  today  use  typewriters  for  writing  their  letters, 
thereby  gaining  over  the  old  handwritten  letters  the  advantage 
of  speed  and  legibiUty. 

But  since  the  executive  has  so  many  letters  to  write,  he 
seldom  does  his  own  typewriting.  Instead,  he  dictates  to  a 
stenographer,  or  to  a  dictating  machine.  In  this  way  a  man 
can  answer  several  hundred  letters  a  day,  while  if  he  had  to 
typewrite  his  own  letters,  he  would  not  be  able  to  answer  more 
than  a  limited  number. 

Answering  the  mail.  Most  letters"  that  are  not  mere 
acknowledgments  require  an  answer.  Some  letters,  such  as 
inquiries,  remittances,  and  so  forth  can  be  answered  at  once. 
Others  require  certain  information  or  possibly  getting  the  previous 
correspondence  from  the  files  before  they  can  be  answered. 
Still  others,  such  as  complaints  and  requests  for  adjustments, 
call  for  investigation,  although  many  houses  make  it  a  point 
to  acknowledge  at  once,  as  a  matter  of  courtesy,  all  letters  to 
which  the  answer  may  be  delayed. 

The  three  steps  in  answering  a  letter  are: 

(a)  determining  the  nature  of  the  letter 

(b)  getting  the  necessary  information 

(c)  writing  or  dictating  the  answer 

Analyzing  the  letters.  The  first  step,  therefore,  before 
answering  any  letter,  is  to  determine  into  which  class  it  falls. 
Perhaps  it  will  help  if  we  Hst  certain  kinds  of  letters  and  then 

21 


'22  OFFICE  TRAINING   AND  STANDARDS 

sec  which  kind  our  letter  is.     In  general,  there  are  10  kinds  of 
letters.     They  are: 

(1)  inquiries 

•      (2)  sales 

(3)  acknowledgments 

(4)  orders 

(5)  complaints 

(6)  requests  for  adjustment 

(7)  collection 

(8)  remittance 

(9)  introduction,  application,   recommendation 
(10)  miscellaneous 

Having  determined  what  kind  of  letter  it  is  we  are  going  to 
answer,  and  having  obtained  the  information  necessary  for 
an  intelligent  reply,  we  proceed  to  write  or  dictate  our  answer. 

Methods  that  save  time.  Nearly  all  firms  use  some  kind 
of  "form  letter"  and  "form  paragraph"  to  answer  certain 
letters,  on  account  of  the  economy  in  dictating  correspondence. 
These  letters  are  numbered  and  filed  in  a  form  book,  and  may 
be  copied  as  the  body  of  the  letter  or  inserted  in  paragraphs 
where  a  commonly  asked  question  always  requires  the  same 
answer.  If  they  have  been  carefully  prepared  by  an  expert,  the 
dictator  will  not  only  save  his  time  and  that  of  the  stenographer, 
but  he  will  secure  a  better  letter  by  using  appropriate  forms 
than  by  dictating  without  sufficient  preparation  or  time.  The 
results  also  are  likely  to  be  more  satisfactory. 

Another  kind  of  form  letter  commonly  used  is  more  in  the 
nature  of  a  circular  or  follow-up  letter.  The  printing  is  usually 
in  imitation  typewriting  with  a  blank  left  for  filling  in  the  name, 
address,  and  sometimes  an  introductory  clause  to  make  it 
more  personal.  Care  should  be  taken  that  any  "fill-ins"  are 
exactly  in  line  and  that  the  address  is  properly  placed.  Such 
letters  are  intended  to  give  the  appearance  of  a  personally 
dictated  answer,  and  should  be  prepared  with  that  object  in 
mind  at  all  times. 

Other  form  letters  are  sometimes  used  where  no  attempt  is 
made  to  imitate  the  typewriter,  such  as  stock  letters  of  collection 
agencies  or  general  advertising  circulars. 


G.  M.  JOHNSTON  COMPANY 

26  WATER  STREET 


Milwaukee 
August  9.  1918. 


STENOGRAPHERS  AND  TYPISTS 


J.  A.  Blaisdell  Company 
2967  Main  Street 
Indianapolis,  Indiana 

Gentlemen: 

As  we  desire  uniformity  of  style  in  the  arrangement  of  all  letters 
leaving  our  office,  you  will  please  use  this  letter  as  a  model  for 
future  correspondence. 

The  "M"  of  Milwaukee  should  be  below  and  slightly  to  the  right  of 
the  printed  heading;  the  date  should  be  centered  underneath 
exactly  as  shown. 

Begin  the  letter  addressing  the  customer  one  space  beneath  the 
dot  on  the  upper  left-hand  side.  (Where  the  margins  are  to  be 
unusually  wide,  because  of  a  short  letter,  start  one  space  below 
but  to  the  right  of  the  dot.)  In  cases  where  the  letter  is  to  a 
small  town  and  no  street  address  is  given,  show  the  city  on  the 
second  line  and  the  state  on  the  third  line.  Where  a  four-line 
address  is  necessary,  start  on  a  line  with  the  dot.  In  the  case 
of  a  five-line  address  start  one  space  above  the  dot. 

The  left-hand  margins  of  paragraphs  must  be  in  line  with  the 
heading;  double  space  between  paragraphs. 

In  closing,  use  the  phrase  "Yours  very  truly."  starting  exactly 
in  the  middle  of  the  sheet;  sign  "G.  M.  Johnston  Company,"  start- 
ing underneath  the  "s"  of  "Yours."  When  the  letter  is  to  be  signed 
place  the  word  "By"  two  spaces  below  and  immediately  underneath 
the  initial  "G."  Have  the  correspondent's  and  the  stenographer's 
initials  on  a  line  with  the  left-hand  margin,  two  spaces  lower 
than  "G.  M.  Johnston  Company"  Regulate  the  width  of  margin  by 
the  length  of  the  letter  to  be  written. 

When  the  letter  cannot  be  written  on  one  sheet  use  a  special 
second  sheet,  of  the  same  grade  of  stationery. 

Show  "-2-"  "thus,  two  spaces  below  the  heading,  and  continue  the 
letter  three  spaces  lower  than  the  "-2-"  with  the  same  width 
nargin  as  on  the  first  sheet. 

Yours  very  truly, 

G.  M.  Johnston  Company 

GUJ:MN  By 


FIGURE  8:     How  easy  it  is  to  write  a  letter  just  the  way  the  office  manager  wants 

it,  when  you  have  a  model  letter  like  this  to  show  you  where  to  place  the  date,  the 

salutation,  and  conclusion,   how  to  space  the  paragraphs,   and  everything  else  you 

need  to  know.     Every  stenographer  has  a  copy  of  this  letter  in  her  desk. 


23 


24  OFFICE  TRAINING  AND  STANDARDS 

Taking  dictation.  The  stenographer  may  take  down  the 
letter  in  shorthand,  or  she  may  use  one  of  the  various  shorthand 
writing  machines.  These  machines  are  supposed  to  be  sold 
only  to  operators  who  are  trained  in  their  proper  use. 

What  the  dictating  machine  does.  The  dictating  ma- 
chine works  on  the  principle  of  the  talking  machine.  The 
dictator  dictates  his  letter  into  the  machine,  which  records 
what  he  says  on  a  wax  cylinder.  When  the  typist  writes  the  let- 
ter, she  listens  to  the  talking  machine  and  hears  what  the  dictator 
has  said  just  as  if  he  were  talking  to  her. 

The  dictograph  is  used  by  some  business  houses  in  dictating 
letters.  This  instrument  is  somewhat  like  a  telephone,  except 
that  you  do  not  have  to  hold  your  mouth  close  to  the  transmitter. 
It  is  automatic,  in  that  pressing  a  button  gives  instant  connec- 
tion with  the  desired  department.  By  using  this  instrument 
you  do  not  have  to  call  the  stenographer  into  the  office  to  dictate 
a  letter.  She  sits  at  her  own  desk  and  takes  down  the  letter  aa 
you  talk  through  the  dictograph. 

Transcribing  the  letters.  Make  yourself  familiar  with  the 
style  of  letter  preferred  in  your  office  and  adapt  yourself  to  its 
requirements.  There  is  no  reason  why  every  letter  should  not 
be  neat,  artistic,  accurate,  and  attractive  in  appearance.  The 
margins  should  be  even  at  the  sides  and  a  Httle  wider  at  the 
bottom  than  at  the  top,  similar  to  the  plan  usually  followed  in 
framing  a  picture.  The  spacing  must  of  course  be  regulated 
by  the  size  of  the  paper  and  the  length  of  the  letter.  When 
single  spacing  is  used,  the  paragraphs  should  be  separated  by 
double  spacing.  On  page  23  is  shown  a  model  letter  used  in 
one  office.  Every  stenographer  has  a  copy  of  this  letter  to 
which  she  can  refer  at  any  time. 

Labor-saving  devices  in  the  office.  There  are  a  number 
of  labor-saving  devices  which  lighten  considerably  the  work  of 
handUng  correspondence.  Among  these,  the  typewTiter  has 
become  one  of  the  most  important.  It  is  necessary  for  the 
operator  to  know  how  to  manipulate  the  machine  skilfully  and 
how  to  keep  it  in  perfect  condition.  The  manufacturer  usually 
furnishes  a  })0()k  of  instructions  on  the  care  of  the  machine,  and 
these  instructions  should  be  carefully  followed. 


STENOGRAPHIC  WORK  AND  STANDARDS  25 

How  letters  are  copied.  In  general,  a  copy  is  made  of 
every  letter  or  paper  that  leaves  the  office.  This  copy  is  kept 
on  file  for  reference.  Formerly  copies  of  pen-wTitten  papers 
were  made  by  means  of  the  letter-press.  Later,  copying  ink 
was  used  on  the  type\\Titers  and  copies  made  by  the  same  process. 
The  greatest  objection  to  this  method  was  that  while  the  copies 
were  perfect,  they  were  copied  and  indexed  in  a  large  book  which 
could  not  be  filed  with  the  original  letter. 

To  avoid  this  difficulty,  a  roller  copying  machine  was  in- 
vented and  the  impression  transferred  to  a  continuous  roll  of 
thin  paper,  which  was  cut  off  and  filed  with  the  letter.  Many 
legal  offices  still  have  their  important  papers  copied  in  this  way, 
but  carbon  copies  are  coming  into  more  general  use.  The  sheet 
of  carbon  paper  is  inserted  between  the  letterhead  and  the  second 
sheet,  and  the  impression  of  the  tj-pewriter  keys,  striking  the 
letterhead,  is  transferred  by  the  carbon  paper  to  the  second 
sheet,  making  an  exact  copy  of  the  original. 

There  are  also  disadvantages  in  the  use  of  carbon  copies. 
If  changes  are  made  in  the  original,  it  is  necessary  to  see  that 
the  same  alterations  are  made  on  the  carbon  copy.  This  is 
usually  done  wdth  pen  and  ink,  unless  the  letter  is  entirely  re- 
written, when  a  new  carbon  copy  is  of  course  made,  and  the  old 
one  destroyed.     Some  firms  also  place  the  signature  on  the  copy. 

Where  exact  copies  of  contracts,  telegrams,  or  important 
letters  are  required,  the  letter-press  method  is  still  in  use.  If 
more  than  four  copies  are  required,  it  is  considered  a  waste  of 
time  to  use  the  carbon  paper  except  with  very  thin  paper;  hence 
the  tj^jist  of  today  must  be  familiar  with  the  use  of  the  various 
duplicating  apphances  such  as  the  gelatin  dupHcator,  stencil 
duplicator,  type  and  ribbon  duplicator,  and  the  automatic  type- 
writer, all  of  which  are  in  general  use. 

The  gelatin  duphcators  are  used  when  50  or  less  copies  are 
needed.  The  material  to  be  reproduced  is  either  written  by  pen 
or  typewriter  with  regular  copying  ink.  It  requires  very  little 
instruction  to  learn  to  operate  this  simple  appliance. 

The  stencil  duplicator.  In  many  commercial  schools,  the 
stenographers  are  expected  to  learn  how  to  manipulate  the 
stencil  dupHcator,  since  it  is  commonly  used  in  printing  circulars 


26  OFFICE  TRAINING   AND  STANDARDS 

and  form  letters  where  less  than  a  thousand  copies  are  desired. 
Several  thousand  copies  can  be  printed  in  an  hour  by  the  use 
of  a  motor-driven  machine,  while  about  a  thousand  can  be  printed 
in  the  same  time  by  hand  power. 

When  thousands  of  follow-up  form  letters  are  required,  it  is 
an  economy  of  time  to  use  the  type  and  ribbon  duphcator.  With 
this  machine  a  facsimile  signature  may  be  shown  in  ink,  giving 
the  letter  a  more  personal  touch. 

The  Multigraph,  Printograph,  Flexotype*  Multicolor  and 
Writerpress  are  machines  of  the  same  class  in  which  actual  type 
is  set  and  the  impression  made  through  a  typewriter  ribbon. 

One  of  the  more  recent  dupHcating  machines  on  the  market 
is  the  automatic  typewriter.  It  is  built  somewhat  on  the  prin- 
ciple of  the  piano  player  with  a  regular  typewriter  as  a  part  of  the 
equipment.  A  single  operation  produces  a  finished  letter  with 
the  desired  date,  name,  address,  and  special  notations  complete. 

Getting  letters  ready  to  sign.  After  the  typist  or  stenog- 
rapher has  completed  the  letter,  she  places  it  under  the  flap 
of  the  envelop  with  the  addressed  side  up.  The  one  who  signs 
the  letters  should  either  sign  his  name  so  that  it  can  be  read  or 
else  have  his  name  typewritten  somewhere  near  his  signature. 
Unreadable  signatures  may  be  costly  and  cause  endless  incon- 
venience, annoyance,  and  often  the  loss  of  business. 

Where  large  numbers  of  checks,  drafts,  bills,  stock  certif- 
icates, pay  checks,  or  dividend  checks  are  to  be  signed,  a  check- 
signing  machine  is  often  used.  With  this  machine,  14,000  papers 
can  be  signed  in  a  little  less  than  three  hours.  The  operator 
writes  with  a  monitor  pen  which  controls  a  series  of  fountain 
pens  that  respond  to  the  sHghtest  movements  of  the  monitor 
pen  and  reproduce  the  exact  signature  of  the  operator.  The 
paper  drops  into  a  tray  and  a  new  set  of  checks  is  automatically 
drawn  under  the  pens. 

Verifying  enclosures  and  remittances.  The  stenographer 
will  be  held  responsible  for  any  enclosm-es  to  be  sent  with  the 
letters  she  writes.  Promised  enclosures  are. either  forgotten  or 
placed  in  the  wrong  letter  or  package  every  day,  to  the  annoyance 
of  thousands  of  business  men.  Make  it  a  point  to  collect  the 
enclosures  as  soon  as  the  letter  is  written  and  place  them  in 


FIGURE  9:     If  you  want  to  feel  tired 

out  before  you  are  half  through  the  day 

sit  humped  up  like  this  girl,  but — 


FIGURE  10:    If  you  prefer  to  keep  fresh 

and  alert  all  day  long,  you  will  find  that 

this  posture  is  very  much  better. 


FIGURE  11:     Here  is  a  room  full  of  girls  transcribing  letters  from  the  dictating 

machines  beside  each  desk.     The  woman  sitting  at  the  desk  at  the  right  is  their 

supervisor.     The  cylinders  are  records  of  letters  waiting  to  be  transcribed. 

27 


Dictate  the  following  letter  in  one  and  one-half 
minutes.  As  much  as  possible  is  to  be  trans- 
cribed within  four  minutes.  Accuracy  will  be 
counted  more  than  merely  speed.  Handle  mar- 
gins and  indentations  with  care  and  judg- 
ment.     The  basis  is  thirty-five  words  a  minute. 


THE  1919  calendar  we  got 
out  a  few  months  ago  ap- 
pealed favorably,  although  it 
was  a  little  late  in  the  season. 
Several  customers  informed  us 
they  had  already  purchased  a 
calendar  supply  for  1919,  and 
suggested  that  we  take  up  the 
matter  early  for  1920.  We 
have  done  so,  and  enclose  two 
samples.  You  may  have  either 
style,  with  your  name  and 
business  card,  at  $5  a  hundred. 
Our  name  will  not  appear  at 
all,  so  the  calendar  will  be  yours 
and  you  will   get  a  nice  piece 


of  work  at  less  than  half  what 
you  would  pay  for  similar  cal- 
endars if  you  placed  an  order 
direct.  A  calendar  makes  a 
very  useful  and  acceptable  re- 
membrance to  your  trade  and 
is  especially  appreciated  by 
prospective  customers.  We 
must  fileadditionalordersearly 
with  the  calendar  people,  in  or- 
der to  get  the  low  price.  May 
we  therefore  hear  from  you 
promptly,  telling  us  which  style 
you  wish  and  the  copy  you 
would  like  printed  on  your 
supply  ? 


FIGURE  12:  When  a  stenographer  applies  for  a  position,  she  is  usually  given  a 
test  for  speed  and  accuracy.  The  young  woman  shown  here  is  taking  such  a  test. 
If  she  writes  this  letter  neatly,  correctly,  and  within  the  required  time,  the  employer 
will  know  that  she  is  competent,  and  capable  of  filling  the  position  satisfactorily. 

28 


STENOGRAPHIC  WORK  AND  STANDARDS  29 

the  addressed  envelop  or  make  a  note  of  the  number  of  enclosures 
on  the  letter  and  copy  from  your  notes  a  complete  list  on  a  separ- 
ate paper.  You  cannot  depend  upon  finding  later  all  the  en- 
closures mentioned  in  the  body  of  your  notes. 

If  something  is  to  be  sent  under  separate  cover,  send  the 
mailing  clerk  an  addressed  label  at  once,  as  it  generally  takes 
more  time  for  third-class  mail  to  reach  its  destination.  When  a 
large  number  of  circulars  are  to  be  sent  to  one  address,  it  is 
customary  to  number  them  by  groups  so  that  they  can  be  easily 
designated.  In  case  many  sets  of  circulars  are  needed  for  dis- 
tribution, much  time  and  labor  are  saved  by  arranging  the 
pamphlets  on  a  revolving  table  so  that  they  can  be  assembled  as 
they  pass  by.  Although  this  device  takes  up  considerable 
space,  it  serves  the  purpose. 

Where  the  mail  is  heavy,  it  is  a  good  plan  to  put  the  letters 
with  enclosures  in  a  separate  group  to  be  specially  looked  after  at 
mailing  time.  The  maihng  clerk,  who  should  be  familiar  enough 
with  all  forms  of  enclosures  to  detect  errors  or  omissions,  can 
then  carefully  verify  all  amounts  mentioned  in  remittance  en- 
closures, without  losing  any  time. 

Standards  of  work.  In  every  office,  some  of  the  em- 
ployees work  faster  than  others.  The  faster  workers  may  be 
more  capable,  or  better  trained,  or  they  do  not  waste  so  much 
time  as  the  slower  ones.  In  any  case,  they  turn  out  more  work. 
Under  these  conditions,  it  doesn't  seem  fair  to  pay  the  slow 
workers  as  much  as  the  fast  workers.  On  the  other  hand,  it  is 
not  always  possible  to  obtain  fast  workers  at  once.  Usually 
some  training  is  necessary.  One  way  of  training  the  slower 
workers  to  do  more  work  is  to  set  standards  of  accomplishment. 
An  investigation  is  made  to  determine  what  would  be  a  fair  day's 
work  for  one  person.  This  amount  is  then  called  the  standard. 
The  standard  of  measurement  of  typewritten  matter  that  is 
commonly  used  is  the  square  inch,  and  a  transparent  celluloid 
scale  is  used  like  that  on  page  31. 

Many  offices  have  already  estabhshed  standards  of  perform- 
ance for  a  day's  work  and  the  pay  is  determined  by  the  amount 
accomphshed.  A  bonus  system  which  remunerates  each  worker 
according  to  the  quantity  and  quality  of  work  done  enables 
many  to  increase  materially  their  incomes. 


30  OFFICE  TRAINING  AND  STANDARDS 

Dictating  machine  standards.  Several  years  ago  the  Cur- 
tis PubUshing  Company,  which  employs  over  1,000  persons  in  its 
offices,  made  an  effort  to  standardize  the  operation  of  their  dic- 
tation machines.  A  school  of  instruction  was  estabUshed  and 
measurements  taken  of  the  work  being  done.  It  was  found 
that  the  average  production  of  an  operator  a  week  was  1,200 
square  inches  of  typewritten  matter  and  the  wages  of  a  girl  who 
did  this  work  was  $9. 

After  a  scientific  study  of  the  operation  and  the  fixing  of  a 
standard,  it  was  found  that  4,200  square  inches  a  week  became 
the  average  production,  and  the  wages  increased  from  $9  to  $11 
a  week.  This  meant  an  increase  of  22%  in  the  wages  and  a  de- 
crease in  the  cost  of  production  from  $7.50  to  $2.50  for  1,000 
square  inches,  or  an  increase  in  efficiency  of  200%.  The  work 
was  not  so  difficult,  was  more  skilfully  executed,  and  was  far 
more  interesting.  Surely  a  plan  which  will  double  the  efficiency 
of  the  workers  and  make  a  game  out  of  work  is  much  better  than 
the  hit-or-miss  method  where  everyone  does  as  he  thinks  best, 
regardless  of  method. 

This  result  is  accomplished,  first,  by  selecting  only  appli- 
cants who  give  evidence  of  becoming  efficient;  second,  by  train- 
ing the  apphcants  chosen  in  the  details  of  the  department  to 
which  they  are  to  be  assigned;  third,  by  holding  classes  for  em- 
ployees to  review  the  best  processes  and  explain  modifications; 
fourth,  by  determining  what  constitutes  a  fair  day's  work  and 
establishing  that  as  a  standard;  fifth,  by  inaugurating  a  bonus 
system  which  will  remunerate  each  worker  according  to  the 
quality  and  quantity  of  work  done. 

Stenographic  standards.  Some  offices  have  estabUshed  a 
standard  of  60  words  a  minute  for  transcribing  dictation.  The 
pay  for  this  class  of  work  is  $18  a  week.  No  standard  is  fixed  for 
dictation,  but  the  same  rate  is  paid  for  the  time  spent  in  dictation 
that  is  earned  in  transcribing.  This  is  estimated  on  an  average 
number  of  12  words  a  line  and  2G  lines  on  a  page.  At  the  rate 
of  60  words  a  minute,  a  page  may  be  transcribed  from  short- 
hand notes  in  about  5  minutes. 

After  making  allowance  for  time  spent  in  dictation  or  for 
lunch  or  other  interruptions,  if  the  general  average  is  only  30 


.08 
.17 
.25 

.17 
.33 

.60 

.25 
.50 
.75 

.33 

.67 

1.00 

.42 
.83 

1.25 

.50 
l.OO 
1.60 

.58 
1.17 
1.75 

.67 
1.33 
2.0O 

.75 
1.50 
2.25 

.33 

.42 
.50 

.67 

.83 

1.00 

1.00 
1.25 
1.50 

1.33 
1.67 

2.00 

1.67 
2.08 
2.50 

2.00 
2.60 
3.00 

2.33 
2.02 
3.50 

2.67 
3.33 
4.00 

3.00 
3.75 
4.50 

.58 
.67 
.75 

1.17 
1.33 
1.50 

1.75 
2.00 
2.25 

2.33 
2.67 
3.00 

2.02 
3.33 
3.75 

3.60 
4.00 
4.50 

4.08 
4.67 
5.25 

4.67 
5.33 
6.00 

6.25 
6.00 
6.75 

.83 

.02 

1.00 

1.67 
1.83 
2.00 

2.50 
2.75 
3.00 

3.33 
3.67 
4.00 

4.17 
4.58 
5.00 

5.00 
5.50 
6.0O 

5.83 
6.42 
7.00 

6.67 
7.33 
8.00 

7.50 
8.25 
9.00 

1.08 
1.17 
1.25 

2.17 
2.33 
2.50 

3.25 
3.50 
3.75 

4.33 
4.67 
5.00 

5.42 
5.83 
6.25 

6.50 
7.00 
7.50 

7.58 
8.17 
8.75 

8.67 

0.33 

lO.OO 

0.75 
10.60 
11.25 

1.33 
1.42 
1.50 

2.67 
2.83 
3.00 

4.00 
4.25 
4.50 

5.33 
5.67 
6.00 

6.67 
7.08 
7.50 

8.00 
8.60 
9.00 

0.33 

0.92 

10.50 

10.67 
11.33 
12.00 

12.00 
12.75 
13.50 

1.58 
1.67 
1.75 

3.17 
3.33 
3.50 

4.75 
5;00 
5.25 

6.33 
6.67 
7.00 

7.02 
8.33 
8.75 

0.50 
10.00 
10.50 

11.08 
11.67 
12.25 

12.67 
13.33 
14.00 

14.25 
15.00 
15.75 

1.83 
1.92 
2.00 

3.67 
3.83 
4.00 

5.50 
5.75 
6.00 

7.33 
7.67 
8.00 

9.17 

9.58 

10. 00 

11.00 
11.50 

12.00 

12.83 
13.42 
14.00 

14.67 
15.33 
16.00 

16.50 
17.25 
18.00 

2.08 
2.17 
2.25 

4.17 
4.33 
4.50 

6.25 
6.50 
6.75 

8.33 
8.67 
9.00 

10.42 
10.83 
11.25 

12.50 
13.00 
13.50 

14.58 
15.17 
15.75 

16.67 
17.33 
18.00 

18.75 
10. 50 
20.25 

2.33 
2.42 
2.50 

4.67 
4.83 
5.00 

7.00 
7.25 
7.50 

9.33 

0.67 

lO.OO 

11.67 
12.08 
12.60 

14.00 
14.60 
15.00 

16.33 
16.02 
17.50 

18.67 
10.33 
20.00 

21.00 
21.75 
22.50 

2.58 
2.66 
2.75 

5.17 
5.33 
5.50 

7.75 
8.00 
8.25 

10.33 
10.67 
11.00 

12.02 
13.33 
13.75 

15.50 
16.00 
16.50 

18.08 
18.67 
19.25 

20.67 
21.33 
22.00 

23.25 
24.00 
24.75 

2.83 
2.92 
3.00 

6.67 
5.83 
6.00 

8.50 
8.75 
9.00 

11.33 
11.67 
12.00 

14.17 
14.68 
15.00 

17.00 
17  60 
18.00 

10.83 
20  42 
21.00 

22.67 
23.33 
24.00 

25.60 
26.25 
27.00 

3.08 
3.17 
3.25 

6.17 
6.33 
6.50 

0.25 
9.50 
9.75 

12.33 
12.67 
13.00 

15.42 
15.83 
16.25 

18.60 
10.00 
19.60 

21.58 
22.17 
22.76 

24.67 
25.33 
26.00 

27.75 
28.50 
29.25 

3.33 
3.42 
3.50 

6.67 
6.83 
7.00 

10.00 
10.25 
10.50 

13.33 
13.67 
14.00 

16.67 
17.08 
17.50 

20.00 
20.60 
21.00 

23.33 
23.92 
24.60 

26.67 
27.33 
28.00 

30.00 
30.75 
31.60 

FIGURE  13:     In  some  offices  a  transparent  celluloid  scale  like  this  one  is  used  to 

measure  the  typists'  work.     When  the  upper  left-hand  corner  of  the  scale  is  placed 

over  the  upper  left-hand  corner  of  the  typewritten  matter,  the  number  over  the 

lower  right-hand  corner  shows  how  many  square  inches  have  been  typed. 

31 


32  OFFICE  TRAINING  AND  STANDARDS 

words  a  minute,  the  operator  receives  a  salary  of  S9  a  week.  It 
has  been  shown  that  the  stenographer  takes  considerable  satis- 
faction in  maintaining  a  certain  standard  of  proficiency,  especially 
when  she  receives  a  salary  in  accordance  with  the  standard  at- 
tained by  her  in  her  w^ork. 

In  one  office  where  this  method  has  been  employed,  with  a 
force  of  about  75  stenographers,  not  only  were  the  salaries  in- 
creased 20%,  but  a  saving  of  20%  was  made  in  the  department. 
A  competent  operator  with  two  assistants  was  placed  in  charge. 
The  chief  operator  had  charge  of  assignments,  gave  out  the  in- 
structions, and  kept  time.  One  assistant  was  in  charge  of  the 
phonograph  division,  while  the  other  measured  all  work  and 
looked  over  the  correspondence,  making  it  unnecessary  for  the 
dictator  to  read  his  letters  for  ordinary  errors. 

Standards  for  typists.  With  the  general  use  of  the  type- 
writer in  making  out  bills,  statements,  order  forms,  card  in- 
dexing, and  looseleaf  papers,  there  is  a  constant  demand  for 
capable  typists.  The  use  of  phonograph  dictation  is  another 
cause  of  this  increased  demand. 

Since  it  is  an  ea^y  matter  to  measure  the  speed  and  accuracy 
of  the  typist,  the  tendency  is  to  standardize  all  such  work  and 
pay  the  operator  according  to  his  proficiency.  Many  students 
sacrifice  even  a  moderate  speed  for  accuracy,  and  others  go  to 
the  worse  extremity  of  sacrificing  accuracy  for  speed.  The  typist 
must  not  only  be  accurate,  but  must  also  be  fairly  speedy  or 
else  fall  behind  in  the  race  for  supremacy. 

Select  some  special  sentence  and  time  yourself  on  it  today. 
Practice  the  same  sentence  a  httle  each  day  and  note  the  im- 
provement from  week  to  week.  When  you  can  write  110  words 
or  more  a  minute  without  an  error,  you  may  be  sure  that  you  can 
ultimately  increase  your  present  speed  in  ordinary  copying  work. 

Take  the  sentence:  "Now  is  the  time  for  all  good  men  to 
come  to  the  aid  of  their  party,"  and  see  how  many  times  you 
can  write  it  without  a  mistake  in  10  minutes. 

Knowing  and  also  doing.  You  may  easily  see  from  the 
foregoing  pages  that  a  worker  in  the  correspondence  department 
is  an  important  factor  in  helping  to  carry  out  the  business  opera- 
tions of  the  office.     You  should  not  only  know  exactly  what  is  to 


STENOGRAPHIC  WORK  AND  STANDARDS  33 

be  done,  but  also  the  reason  for  doing  it,  and  the  best  way  to 
standardize  all  operations.  If  you  are  interested  in  getting 
good  results,  you  may  be  sure  you  will  be  given  a  chance  to 
show  what  you  can  do. 

Remember  that  the  more  you  know  the  more  valuable  will  be 
your  services,  provided  you  do  your  best  at  all  times. 

DICTATION  STANDARDS 

How  to  say  what  you  mean 

1.  Do  not  say  "the  best  of  the  two,"  when  you  mean  "the  better." 

2.  Do  not  say  "can  I  see  you?"  when  you  mean  "may  I  see  you?" 

3.  Never  say  "do  you  carry  hardware?"  when  you  mean  "sell." 

4.  Do  not  say  "every  once  in  a  while,"  for  "occasionally." 

5.  Never  say  "what  line  of  business?"   when  you  mean  "kind." 

6.  Never  say  "return  same  to  me,"  when  you  mean  "return  it." 

7.  Do  not  write  "in  reply  will  say,"  if  you  mean  "I  will  say." 

8.  Never  say  "I  guess,"  when  you  mean  "I  suppose." 

9.  Do  not  say  "I  don't  think,"  when  you  do  think. 

10.  Do  not  say  "I  beg  to  advise  you,"  or  "beg  to  inquire." 

11.  Do  not  say  "the  two  last,"  when  you  mean  "the  last  two." 

12.  /Never  call  a  person  a  "pSrt^."      \  , 

13.\Never  make  a  "  date '^ when  an  appointment  is  desired<- 

14.  Do  not  say  "posted"  if  you  mean  "informed." 

15.  Don't  say  "I  don't  hardly  know,"  or  "I  can't  hardly  tell." 

16.  Do  not  say  "It  looks  good,"  when  you  mean  "it  looks  well." 

17.  Do  not  say  "equally  as  well,"  when  you  mean  "as  well." 

18.  Never  use  "he  don't"  for  "he  doesn't." 

19.  Never  say  '^a  couple  of  days"  when  you  mean  "two  days." 

20.  Do  not  say  "along  that  line"  when  you  mean  "on  that  subject." 

21.  Never  say  "a  beautiful  home"  if  you  mean  "house." 

22.  Do  not  say  "yourself  and  myself"  if  you  mean  "you  and  me." 

23.  Do  not  say  "it  said  in  the  paper,"  when  you  mean  "the  paper  said  it." 

24.  Do  not  say  "a  good  write-up"  if  you  mean  "article." 

25.  Do  not  say  "lots  of,"  when  you  mean  "many." 

26.  Why  say  "the  two  are  both  alike"  when  they  are  "alike"? 

27.  Why  say  "funny"  when  you  mean  "odd,"  "strange,"  or  "queer"? 

28.  Did  you  "extend  an  invitation"  when  you  intended  to  "invite"? 

29.  Why  say  "he  didn't  show  up,"  when  you  mean  "he  didn't  appear"? 

30.  Do  not  say  "I  am  real  glad,"  if  you  mean  "very  glad." 

31.  Do  not  say  "seldom  ever,"  when  you  mean  "seldom." 

32.  Do  not  say  "the  package  is  liable  to  come"  for  "may  come." 

33.  Do  not  say  "a  less  number,"  when  you  mean  "a  fewer." 

34.  Do  not  divide  "among"  two  people  but  "between"  them. 

35.  Don't  say  "  enclosed  herewith."    "  Herewith  "  is  superfluous. 


34 


OFFICE  TRAINING  AND  STANDARDS 


36.  Don't  say  "  I  only  want  two  dollars "  if  j'ou  want  "only  two  dollars." 

37.  Don't  say  "I  doubt  its  veracity"  if  you  mean  "the  truth." 

38.  Don't  say  "the  observation  of  the  rule"  if  you  mean  the  "observance." 

39.  Don't  say  " the  latter  end  of  the  year "  if  you  mean  "the  end." 

40.  Don't  say  "if  in  case  I  succeed,"  when  you  mean  "if  I  succeed." 

41.  Don't  say  "he  was  celebrated  for  his  crimes"  if  you  mean  "notorious." 

42.  Don't  say  "  to  be  given  away  gratis  "  if  you  mean  "  to  be  given  away." 

43.  Avoid  "the  same"  as  5^ou  would  the  smallpox. 

44.  Avoid  "thanking  you  in  advance."    It  is  impossible. 

45.  Avoid  long  words  when  short  ones  are  better.    Your  object  in  writ- 
ing is  to  make  yourself  clear,  not  to  confuse  your  correspondent. 


DICTATION  STANDARDS 

The  choice  of  words 

From  "The  Writing  of  Good  Letters  for  the  Crane  Company" 

(Reprinted  by  permission  of  the  Crane  Company) 

DON'T  WRITE 


Adopt  for  take  or  decide. 

Anticipate  for  expect. 

Apt  for  likely. 

Appreciate  for  value  or  increase. 

Avocation  for  vocation. 

Balance  for  rest  or  remainder. 

Bring  for  take. 

Can  for  may. 

Caption  for  heading  or  title. 

Character  for  reputation. 

Cheap  for  low-priced  or  inexpensive. 

Claim  for  assert. 

Commence  for  begin. 

Complete  for  finish. 

Consequence  for  importance. 

Consider  for  regard. 

Could  for  might. 

Couple  for  two. 

Depot  for  station. 

Differ  with  for  differ  from. 

Donate  for  give. 

Don't  for  doesn't. 

Each  other  for  one  another. 

Excessively  for  exceedingly  or  very. 

Fewer  for  less. 

Graduated  for  was  graduated. 

Have  got  for  have. 


Hurry  for  haste. 

If  for  whether. 

Ill  for  sick. 

Illy  for  ill  (as  an  adverb).    There  is  no 

such  word  as  "illy"). 
Immediately  for   straightway   or   at 

once. 
In  for  into. 

In  so  far  as  for  so  far  as. 
Inaugurate  for  begin. 
Individual  for  person. 
Indorse  for  approve. 
Initiate  for  start  or  begin. 
Last  for  latest. 
Lay  for  lie. 
Lengthy  for  long. 
Liable  for  likely  or  prone. 
Loan  for  lend. 
Locate  for  settle. 
Located  for  found. 
Location  for  place. 
Mutual  for  common. 
Name  for  mention. 
Nice  for  good. 
Nicely  for  well 

Observe  for  say  or  remark  or  see. 
Over  and  above  for  more  than. 


STENOGRAPHIC  WORK  AND  STANDARDS  35 

Partially  for  partly.  Proven  for  proved. 

Party  for  person.  Purchase  for  buy. 

Past  for  last.  Quantity  for  number. 

Patronage  for  custom.  Railway  for  railroad. 
Per  for  a  ("a  ton,"  "a  day,"  not  "per      Reliable  for  trustworthy. 

ton,"  "per  day.")  Reply  for  answer. 

People  for  persons.  Reside  for  live. 

Perform  for  do.  Residence  for  house  or  home. 

Perpetually  for  continually.  Retire  for  go. 

Portion  for  part.  Section  for  region,  vicinity,  or  neigh- 
Posted  for  informed.  borhood. 

Present  for  introduce.  Standpoint  for  point  of  view. 

Preventative  for  preventive.  State  for  say. 

Procure  for  get.  Universal  for  general  or  all. 

STANDARD  EXERCISES 

Watching  your  English  when  dictating 
Can  you  find  the  errors  in  these  sentences,  which  were. taken  from  actual 
business  letters?    If  you  can,  rewrite  them  correctly,  giving  your  reasons  for 
making  the  changes.  j^ 

1.  Each  of  the  companies  sent  their  own  representative. 

2.  Fill  out  the  enclosed  blank  and  return  same  by  return  mail. 

3.  I  have  a  date  with  the  manager  tomorrow  evening. 

4.  The  secretary  published  a  good  write-up  on  cooperation. 

5.  The  balance  of  the  order  was  divided  between  two  firms. 

6.  There  is  another  party  applying  for  the  same  position. 

7.  One  can  build  a  good  home  for  S5,000. 

8.  He  is  proprietor  and  owner  of  the  factory. 

9.  If  you  think  of  opening  a  clothing  store  let  me  give  you  a  little  advice 
along  that  line. 

10.  Yourself  and  friends  are  invited  to  visit  our  factory. 

11.  ThTorder  will  be  shipped  in  a  coiiple  of  days. 

12.  It  isjaid  in  the  paper  that  the  bank  would  be  closed. 

13.  The  accountant  always  does  his  work  in  good  shape. 

14.  The  two  offices  areC^oJB  alike. 

15.  The  shipment  is  liabl£to%me  any  day. 

16.  The  bookkeeper  seldom  e^ter  makes  a  mistake. 

17.  Do  you  carry  farm  implements  now? 

18.  Let  us  know  where  you  are  stopping  and  we  will  send  the  goods. 

19.  Can  we  expect  an  order  from  you? 

20.  We  wisjL^OiU  to  try  any  experiment  with  our  new  tractor. 

21.  Th^ftast(fwo  articles  were  omitted. 

22.  We  received  a  less  number  of  orders  from  you  last  month. 

23.  The  firm  can  not  accept  of  your  hospitality. 

24.  We  have  got  a  large  number  of  reapers  in  the  warehouse. 


36  OFFICE  TRAINING  AND  STANDARDS 

25.  Divide  the  money  btlwyyii  the  three  customers. 

26.  You  should  not  be  angry  frtrme  when  the  goods  were  as  represented. 

27.  The  clerk  died  wi*h  diphtheria,  so  the  shipment  was  delayed. 

28.  If  he  dont  write  soon  we  will  cancel  the  order. 

29.  The  manager's  fatjier  died  when Jid  was  quite  young. 

30.  Your  book  is  different  than  mine. 

31.  The  widow  woman  was  left  without  any  support. 

32.  A  man  that  is  a  member  of  the  firm  will  call. 

33.  The  company  ordered  their  men  to  begin  work. 

34.  'Whttv  shall  we  elect  secretary? 

35.  Who  do  you  regard  as  the  best  salesman? 

36.  In  reply  to  your  inquiry  wi!f  say — . 

37.  Your  esteemed  favor  just  received. 

38.  Yours  of  the  21st  at  hand  and  contents  carefully  noted. 

39.  Your  recent  letter  received  and  I-beg  to  advise-^. 

40.  I-feeg  to-Femain  youf-feumble  servant,  John  Smith. 

DICTATION  STANDARDS 

Perhaps  these  suggestions  will  help  you 

1.  Most  business  letters  are  written  for  the  purpose  of  selling  something. 

2.  Sales  are  the  result  of  confidence. 

3.  Clearness  and  truthfulness  are  convincing. 

4.  If  the  sales  letters  fail  to  sell,  everything  fails. 

5.  The  dictator  must  be  well  informed  on  his  subject. 

6.  He  must  be  accurate,  since  mistakes  are  costly. 

7.  He  must  have  the  tact  never  to  offend. 

8.  He  must  be  always  alert. 

9.  All  letters  should  be  answered  the  day  they  are  received. 

10.  If  a  final  answer  can  not  be  made,  acknowledge  the  receipt  and  follow 
soon  with  a  complete  letter. 

11.  Don't  put  off  answering  the  difficult  letters  until  tomorrow,  as  to- 
morrow may  never  come. 

12.  Avoid  being  brusk,  but  be  direct  and  courteous.    Be  brief,  but  do 
not  omit  important  facts. 

13.  Avoid  arguments,  as  antagonism  drives  away  friends. 

14.  Be  polite,  but  do  not  use  "soft  soap." 

15.  Energy  and  enthusiasm  beget  attention  and  interest. 

16.  Make  your  letter  easy  to  read. 

17.  Avoid  being  funny  and  smart. 

18.  Avoid  confusing  the  prospect  by  presenting  several  propositions. 

19.  Avoid  even  the  aDi?f^?^''-^ri^*"  ^'^  s;arfnsi.n 

20.  Make  your  letter  show  advantages  to  be  gained,  not  evils  to  be  avoided. 

21.  Do  not  use  technical  terms  that  might  not  be  understood. 

22.  Avoid  the  use  of  superlatives,  such  as  tremendous. 

23.  Do  not  omit  the  small  words,  such  as  "a,"  "and"  or  "the." 


STENOGRAPHIC  WORK  AND  STANDARDS  37 

24.  Do  not  use  a  long  word  when  a  short  one  will  do  as  well.    "Begin"  is 
better  than  "inaugurate,"  "buy"  than  "purchase,"  "house"  than  "residence." 

25.  Study  the  origin  and  meaning  of  words. 

26.  Enlarge  your  vocabulary  by  reading  the  best  writers. 

27.  Do  not  use  fancy  letter  paper,  or  green  ink. 

28.  Do  not  place  "bill  poster"  advertisements  on  your  stationery. 

29.  Avoid  closing  paragraphs  beginning  with  "hoping,"  "trusting,"  or 
"I  beg  to  remain." 

30.  Always  sign  your  name  so  that  it  can  be  read. 

DICTATION  STANDARDS 

What  one  stenographer  discovered  about  her  work 

1.  Always  be  prepared  with  material  and  tools. 

2.  Don't  rap  on  the  resk  when  the  dictator  makes  a  pause. 

3.  Be  interested.    Don't  stare  a  hole  through  the  wall. 

4.  Never  put  down  anything  you  don't  understand. 

5.  Ask  questions,  if  necessary,  when  a  pause  occurs. 

6.  Always  be  sure  that  the  names  and  addresses  are  correct. 

7.  Note  special  instructions  in  long  hand. 

8.  Cancel  transcribed  notes  by  drawing  a  line  through  them. 

9.  Number  and  date  note  books  for  filing. 

10.  Don't  omit  small  words  to  save  time. 

11.  Don't  use  abbreviations  in  the  body  of  the  letter. 

12.  Avoid  st,  d,  or  th  in  writing  dates. 

13.  Never  abbreviate  the  names  of  cities. 

14.  Never  write  &  for  "and"  except  in  firm  names. 

15.  Do  not  use  Dear  Miss  for  Dear  Madam  or  Dear  Miss  Smith. 

16.  Never  omit  the  names  of  states  in  addresses. 

17.  Do  not  use  My  Dear  Friend  for  My  dear  Friend. 

18.  Do  not  use  5-12-17  for  May  12,  1917,  in  the  heading  of  a  letter. 

19.  Don't  write  Neb.  for  Nebr.,  Col.  for  Colo.,  Penn.  for  Pa.,  or  Bait, 
for  Baltimore. 

20.  Don't  use  abbreviations  in  the  introductory  address  except  Mr., 
Mrs.,  Dr.,  R.  F.  D.,  St.,  and  Ave. 

21.  Do  not  abbreviate  Master,  Professor,  President,  Superintendent,  or 
Honorable  in  the  address. 

22.  Do  not  abbreviate  the  given  name  of  a  correspondent  unless  he  does. 

23.  Never  address  a  woman  by  her  husband's  title. 

24.  Don't  beg.    You  have  no  right  to  "  beg  attention  "  or  "  beg  to  inquire." 

25.  Never  use  a  punctuation  mark  that  does  not  make  the  meaning  clearer. 

26.  Avoid  "hoping,"  "trusting,"  "awaiting,"  "kindly  answer,"  and  "es- 
teemed favor." 

27.  Always  read  the  letter  before  you  transcribe  the  reply. 

28.  Never  address  a  letter  to  a  large  city  without  giving  the  street  number 
except  to  well-known  concerns. 


38  OFFICE  TRAINING  AND  STANDARDS 

29.  Be  sure  the  address  is  on  the  inside  and  outside  of  the  letter. 

30.  Always  place  the  stamp  in  the  upper  right-hand  corner. 

31.  Never  strike  one  letter  over  another  without  erasing  the  first  one. 

32.  Never  erase  unless  you  can  do  it  without  showing. 

33.  Leave  two  spaces  after  a  period  instead  of  one  or  three. 

34.  Address  the  president  of  the  United  States,  governors,  and  ambassadors 
as  "His  Excellency." 

35.  Address  men  holding  prominent  public  office  as  "Honorable." 

36.  Do  not  crowd  your  letter  to  get  it  on  one  sheet. 

37.  Place  the  body  of  the  letter  in  the  center  of  the  page  so  the  margins 
are  balanced. 

38.  Avoid  an  uneven  right-hand  margin. 

39.  Remember  that  your  efficiency  is  shown  by  the  quantity  and  quality 
of  your  work. 

40.  Remember  that  accuracy  without  speed  is  better  than  speed  without 
accuracy. 

STANDARD  EXERCISES 

Errors  to  avoid  in  transcribing  correspondence 
Here  are  some  errors  made  by  a  stenographer  in  transcribing  her  notes. 
See  if  you  can  find  what  is  wrong,  and  rewrite  each  one  as  it  should  be  written, 
giving  your  reasons  for  making  the  changes. 

1.  Lincoln,  Neb.  7-24=T77' 

2.  Sioux  Falls,  S.  Dak.,  Jan.  2nd,  1917. 

3.  Carrie  Bond  Joplin  Mo.,  My  dr.  Miss: 

4.  Brown  and  Black,  Canton,  Ohio.    Dear  Gents: 

5.  I  am,  Yours  respectively,  Henry  Smith 

6.  Yours  resp'y-     Hiram  Jones. 

7.  Eras.  J.  F.  Towne,  Janesville,  Wisconsin. 

8.  Mr.  Judge  Jones,  Nashville,  Tennessee. 

9.  Yours  of  February  3rd.  rec'd  and  in  reply  will  say — . 

10.  Miss.  Rose  Pyne,  231  N.  27th  St.  Bait.  Maryland. 

11.  Chas.  True  234  W.  2nd  St.  Boston. 

12.  Prof.  F.  C.  Good,  Supt.  City  schools.  Long  Pine,  Neb. 

13.  The  Co.  will  give  you  a  no.  of  large  orders  soon. 

14.  Hoping  to  hear  from  you  soon,  Yours  very  truly. 

15.  P.  J.  Roga,  W.  12th  St.,  Chgo.,  Ills. 

16.  Doctor  J.  W.  Black,  43,  2nd.  ave.  Phila.  Penn. 

17.  If  the  drill  is  not  satisfactory  return  same  at  once. 

18.  Room  45,  124  Penn  Av.  Denver  Col. 

19.  G.  W.  Green,  Hamilton,  Montana,  My  Dear  Sir: 

20.  We  have  shipped  to  Brown  &  Banett  1  suit  of  clothes  &  an  overcoat. 

21.  Between  the  company  and  myself  there  should  be  no  trouble. 

22.  The  train  being  late  will  delay  him  coming. 

23.  Every  business  has  it's  problems. 


STENOGRAPHIC  WORK  AND  STANDARDS  39 

24.  There  is  no  danger  of  me  falling. 

25.  The  next  one  whose  to  give  a  report  is  the  treasurer. 

26.  The  man  who's  place  you  are  taking  has  been  with  us  20  yrs. 

27.  This  is  the  3rd  order  we  have  received  from  you. 

28.  The  books  leaves  were  badly  torn. 

29.  Have  you  seen  Smith's  and  Weston's  new  typewriter? 

30.  I  guess  you  are  mistaken  in  amount  of  the  order. 

31.  I  was  sure  it  was  him  who  made  the  mistake. 

32.  We  saw  your  ad  in  the  Courier  Journal. 

33.  We  can  make  you  a  low  price  on  a  ladies  fur  coat. 

34.  Politics  dont  affect  business  very  much. 

35.  Have  you  received  the  treasurers  report? 

STANDARD  EXERCISE 

A  test  of  stenographic  ability 
This  is  taken  from  the  Regents'  examinations  of  the  New  York  State  Board  of 
Education.    Let  someone  read  it  to  you  and  see  how  long  it  takes  you  to  trans- 
cribe it  accurately  from  your  notes.    Then  practice  it  until  you  can  do  it  in 
the  given  time,  3>^  minutes. 

STANDARD  REQUIREMENTS 
210  words — to  be  copied  in  3K  minutes  from  stenographic  notes. 
Can  you  write  postals,  direct  envelops,  copy  telegrams,  write  on  ruled  paper, 
on  narrow  paper  and  on  wide  paper,  make  carbon  copies  and  letterpress  copies, 
cut  stencils  and  run  off  mimeograph  copies,  use  the  tabulator  and  take  dictation 
directly  on  the  machine— in  fact,  do  the  work  you  may  be  called  on  to  do  the 
first  day  in  the  business  office?  All  these  things  should  be  a  part  of  your  work 
in  school  and  you  should  not  be  satisfied  till  you  can  meet  the  requirements  of 
business.  Remember  this  one  thing  above  everything  else:  Business  men  of 
today  know  that  a  real  stenographer  can  do  first-class  work,  including  all  the 
details  that  I  have  enumerated  above,  and  they  are  looking  for  just  such  a  one. 
A  stenographer,  like  other  machine  operators,  must  be  familiar  with  the 
implements  used  in  the  business.  It  is  not  really  difficult  to  master  the  several 
makes  of  machines  after  you  have  thoroughly  mastered  one,  for  most  writing 
machines  of  today  conform  in  essentials  to  two  standards.  The  student  should 
insist  upon  getting  instruction  on  both  kinds— the  single  and  the  double  key- 
board machines  and  be  prepared  to  use  either  with  ease. 

TYPING  STANDARDS 

How  to  increase  speed  and  accuracy 

1.  If  you  do  not  use  the  touch  system,  learn  it. 

2.  Errors  mean  that  the  fingers  do  not  go  naturally  to  the  right  keys. 

3.  Develop  the  muscles  of  the  hand  and  fingers  by  exercises  used  in 
playing  the  piano. 


40  OFFICE  TRAINING  AND  STANDARDS 

4.  Pay  particular  attention  to  the  little  finger  and  thumb. 

5.  Devote  30  minutes  each  morning  to  practice  exercises. 

6.  Practice  one  selection  until  the  desired  speed  and  accuracy  are  at- 
tained. 

7.  Then  choose  another  selection  and  practice  in  the  same  manner. 

8.  Time  yourself  each  day  and  note  progress. 

9.  Rapid  operators  should  practice  as  well  as  the  slower  ones. 

10.  Striking  two  keys  at  once  shows  lack  of  control  of  the  fingers  and 
must  be  overcome  by  careful  repetition  where  the  mistake  occurs. 

11.  If  the  shift  key  is  not  depressed  far  enough  it  shows  lack  of  control 
of  the  little  finger,  which  needs  strengthening. 

12.  In  the  daily  practice  matter  it  should  be  a  rule  never  to  permit  erasures. 

13.  Avoid  reading  only  a  few  words  at  a  time.    Grasp  a  whole  sentence 
and  write  it  without  stopping. 

14.  Avoid  working  by  spurts,  as  it  merely  results  in  fatigue  and  lessens 
the  output. 

15.  Keeping  stationery  in  a  special  desk  rack  which  holds  each  kmd  of 
paper  avoids  the  loss  of  time  in  removing  it  from  the  desk  drawers. 

16.  Avoid  wasting  time  in  straightening  paper  after  it  has  been  placed 
in  the  machine  by  properly  starting  it. 

17.  Avoid  wasting  time  and  energy  by  adopting  a  correct  position  while 
at  work. 

18.  Avoid  lifting  the  hands  much  above  the  keyboard. 

19.  The  work  must  be  done  by  the  fingers,  which  should  not  be  raised 
more  than  four  inches  above  the  keyboard. 

20.  Adopt  the  standard  abbreviations  given  in  the  United  States  Postal 
Guide,  if  you  must  abbreviate. 

21.  The  block  style  of  writing  addresses  (without  indenting)  is  a  saving 

of  time. 

22.  Enter  speed  contests  whenever  you  have  an  opportunity. 

23.  Two  hundred  square  inches  an  hour  is  considered  a  good  standard. 

24.  Analyze  your  work  carefully  in  order  to  discover  the  cause  of  your 
mistakes  or  failures. 

25.  You  will  find  that  your  accuracy  will  improve  as  your  speed  increases. 

STANDARD  EXERCISE 

What  a  typist  should  be  able  to  do 
Here  is  another  selection  taken  from  the  New  York  Board  of  Regents'  examina- 
tions, which  is  supposed  to  be  copied  in  three  minutes,  if  you  are  up  to  the 
standard  required  for  such  work  in  some  offices. 

SPEED  AND  ACCURACY 
210  words  to  be  copied  in  3  minutes,  without  any  mistakes. 
Until  accuracy  is  a  matter  of  habit,  reduce  speed  somewhat— that  is, 
write  within  your  speed.    But  this  fact  must  be  remembered  also  in  working 


STENOGRAPHIC  WORK  AND  STANDARDS  41 

for  accuracy:  that  habit  is  a  most  powerful  influence  for  either  good  or  bad  and 
that  if  you  write  at  a  certain  speed  it  will  become  a  fixed  habit ;  you  will  get  into 
a  habit  that  will  be  hard  to  get  out  of.  This  danger  can  be  removed  by  doing 
some  work  every  day  to  accelerate  speed.  Put  on  pressure  for  a  little  while, 
but  not  to  such  an  extent  as  to  make  you  lose  control  of  your  nerves.  It  is  easy 
to  go  from  one  extreme  to  another — that  is,  by  trying  to  write  too  rapidly  or 
by  being  too  deliberate. 

The  influence  of  habit  on  accuracy  is  also  very  important.  You  have 
probably  noticed  in  your  practice  that  j^ou  will  often  write  for  a  considerable 
time  without  once  striking  a  WTong  key  and  that  this  gives  you  a  sense  of  buoy- 
ancy, confidence  and  comfort  that  makes  accuracy  easy  and  materially  increases 
your  speed.  You  are  carried  along  by  the  exhilaration  of  doing  perfect  work. 
On  the  other  hand,  if  you  strike  a  wrong  key,  you  ^\ill  probably  make  a  series 
of  mistakes. 

STANDARD  QUESTIONS 

Typing  and  addressing  letters 

1.  What  is  meant  by  preparedness  to  take  dictation? 

2.  What  is  most  desired  of  the  typist  in  getting  out  mail? 

3.  Why  should  the  typist  understand  everji^hing  he  writes? 

4.  Should  he  ever  change  a  letter  dictated  by  liis  employer? 

5.  Why  is  it  important  to  spell  correctly? 

6.  What  is  the  reason  for  using  punctuation  marks? 

7.  What  is  the  reason  for  using  abbreviations? 

8.  When  should  abbreviations  not  be  used? 

9.  Why  it  is  desirable,  in  firm  letters,  to  have  the  initials  of  the  sten- 
ographer and  dictator  on  every  letter? 

10.  What  is  the  best  position  and  form  of  the  envelop  address? 

11.  How  should  the  envelop  and  letter  be  arranged  for  signature? 

12.  How  can  a  typist  write  letters  from  dictation  without  a  knowledge  of 
shorthand? 

13.  How  can  a  typist  write  a  letter  without  having  seen  the  dictator? 

14.  Are  there  any  noiseless  typewriters? 

15.  What  are  the  advantages  in  using  a  dictating  machine? 

16.  Why  is  it  desirable  to  write  on  only  one  side  of  the  paper? 

17.  Why  is  it  desirable  to  keep  a  copy  of  all  business  correspondence? 

18.  What  are  the  advantages  and  disadvantages  of  a  carbon  copy? 

19.  Under  what  conditions  would  it  be  desirable  to  use  letterpress  copies? 

20.  What  is  the  standard  of  measurement  of  typewritten  matter? 


STANDARD  QUESTIONS 

The  technique  of  business  correspondence 

1 .  Why  is  it  desirable  to  use  printed  letterheads? 

2.  Why  is  it  not  desirable  to  place  showy  advertisements  on  letterheads  or 
envelops? 


42  OFFICE  TRAINING  AND  STANDARDS 

3.  Why  is  it  not  desirable  to  omit  your  own  address  or  the  date  of  your 
letter? 

4.  WTiy  should  your  letterhead  and  signature  agree  with  the  name  and  re- 
turn address  on  the  envelop? 

5.  A\Tiy  should  the  address  in  the  letter  correspond  with  the  one  on  the 
envelop? 

6.  What  is  the  proper  form  of  address  and  salutation  for  a  j'oung  unmar- 
ried woman? 

7.  What  is  the  proper  title  for  a  prominent  politician? 

8.  What  are  the  proper  titles  for  a  firm  of  men? 

9.  WTiat  are  the  proper  titles  for  a  firm  of  women? 

10.  What  constitutes  an  effective  approach  in  a  business  letter? 

1 1 .  What  constitutes  an  effective  argument  in  a  business  letter? 

12.  What  constitutes  an  effective  conclusion  in  a  business  letter? 

13.  "V\Tiy  is  it  desirable  to  use  good  English  in  a  business  letter? 

14.  Why  is  it  desirable  to  refer  to  the  date  of  the  letter  you  are  answering? 

15.  Which  is  the  most  important  part  of  a  letter? 

16.  Why  is  it  not  desirable  to  omit  words  for  the  sake  of  brevity? 

17.  Why  is  it  not  desirable  to  use  "hoping,"  "trust,"  or  "awaiting"  in 
closing  a  letter? 

18.  What  is  the  proper  form  for  the  courteous  closing  of  a  business  letter? 

19.  Can  you  sign  your  name  by  machinery? 

20.  Why  should  the  signature  be  in  full  and  always  the  same? 

21.  When  is  it  desirable  to  enclose  a  return  stamp  in  j'our  letter? 

22.  Why  is  it  not  desirable  to  write  letters  with  a  pencil? 

23.  What  constitutes  the  best  business  letter? 

24.  What  is  meant  by  initiative? 

25.  Why  should  the  stenographer  know  how  to  dictate  a  good  letter? 

STANDARD  EXERCISES 

Writing  business  letters 

1.  Write  out  an  order  in  the  form  of  a  business  letter. 

2.  Write  to  a  friend  giving  your  reasons  for  advising  him  to  take  a  course 
in  office  practice. 

3.  Write  to  a  friend  giving  your  reasons  for  advising  him  to  study  short- 
hand and  typewriting. 

4.  Write  to  a  friend  giving  the  qualities  you  think  most  desirable  in  a 
private  secretary. 

5.  Write  to  a  young  friend  urging  him  to  open  a  savings  bank  account. 

6.  Write  to  a  young  friend  in  answer  to  his  letter  asking  for  instructions 
as  to  how  to  open  a  bank  account. 


CHAPTER  IV 

OFFICE  REFERENCE  BOOKS  AND 
HOW  TO  USE  THEM 

IN  ancient  times,  when  any  information  was  required,  it  was 
the  custom  to  sit  in  a  conspicuous  place  and  make  inquiries 

of  passersby.  As  towns  grew  in  size  the  town  crier  was 
employed  to  answer  questions  and  make  public  announcements. 
When  towns  became  cities,  directories  replaced  the  crier. 

The  first  American  directory  was  compiled  in  Philadelphia 
at  about  the  end  of  the  Revolutionary  War.  Boston  did  not 
have  one  until  the  year  in  which  the  Constitution  of  the  United 
States  was  adopted.  Streets  were  not  numbered  in  those  days, 
so  well-known  landmarks  were  used  to  define  locations;  for 
example,  Federal  Street,  Boston,  was  described  as  "running 
from  Simpson's  in  Cow  Lane  down  by  Rev.  Mr.  Popkin's  Meet- 
ing House  into  Milk  Street." 

Classification  of  reference  books.  In  all  these  stages  of 
development  saving  time  has  been  the  basic  motive.  Time  is 
money,  and  many  an  expense  is  justifiable  if  it  represents  a 
worth-while  saving  in  time.  Directories,  dictionaries,  guide 
books,  and  reference  books  of  one  kind  or  another  are  essentially 
time-saving  devices,  in  that  they  give  the  desired  information 
quickly,  accurately,  and  briefly.  To  be  able  to  use  reference 
books  to  the  best  advantage,  let  us  first  classify  them  into 

1.  Directories 

2.  Dictionaries  and  word  books 

3.  Books  of  general  information 

The  three  most  useful  reference  books.  There  are  three 
books  which  will  be  found  in  nearly  every  business  office.  They 
are  the  city  directory,  the  telephone  directory,  and  the  dic- 
tionary.   And  yet  few  people  really  know  how  much  valuable 

43 


44  OFFICE  TRAINING  AND  STANDARDS 

information  each  of  these  books  contains,  or  how  to  get  the 
information  out  of  the  books.  Suppose  you  want  to  find  out 
where  Albert  Wallace  works,  and  what  his  business  is. 

Of  course  if  you  knew  someone  who  knew  Albert  Wallace, 
you  might  ask  your  friend  about  him.  But  you  may  never 
have  heard  of  Albert  Wallace.  The  city  directory  will  not  only 
tell  you  where  Albert  Wallace  works  and  what  his  business  is, 
but  also  where  he  lives.  Furthermore,  the  directory  will  tell 
you  exactly  where  the  streets  are  that  he  works  and  lives  on, 
and  also  how  to  get  there. 

The  city  directory.  In  fact,  the  city  directory  not  only 
contains  an  alphabetical  Ust  of  all  persons  over  18  years  of  age 
who  live  or  work  in  the  city,  giving  their  names  and  occupa- 
tions, where  they  work  and  where  they  live;  but  it  also  Hsts 
all  the  business  houses  in  the  city,  with  the  names  of  the  part- 
ners or  officers.  There  is  definite  information  regarding  streets 
and  numbers  and  how  to  get  to  them;  local  transportation 
systems;  pubUc,  semipublic,  and  private  institutions;  clubs, 
museums,  churches;  so  that  anyone  who  knows  how  to  use  a 
directory  can  in  a  very  short  time  learn  more  about  the  city 
than  some  people  know  who  may  have  lived  there  for  years. 

How  reference  is  made  easy.  All  business  directories  are 
arranged  alphabetically,  and  they  usually  are  cross-indexed  so 
that  a  name  or  business  may  be  located  under  several  different 
heads.  Of  course,  it  is  necessary  to  know  something  about 
the  person  you  wish  to  locate,  how  to  spell  the  name,  or  the 
location  if  you  wish  to  know  the  name,  or  the  business  if  you 
wish  to  know  the  name  or  location. 

How  to  use  the  city  directory.  Open  the  directory  in  the 
middle;  you  will  notice  two  or  more  columns  of  names  (the 
Chicago  city  directory,  for  instance,  has  five  columns);  at  the 
top  of  each  column  is  printed  in  black  type  the  name  of  the 
first  person  in  that  column.  The  names  are  all  arranged  alpha- 
betically so  that  you  can  quickly  locate  any  desired  name. 
If  the  name  you're  looking  for  is  "Wallace,"  turn  over  the  pages 
of  the  directory  fairly  rapidly  until  you  come  to  names  begin- 
ning with  "W";  then  turn  the  pages  more  slowly  until  you  see 
at  the  top  of  the  colunm  "Wa,"  then  "Wall,"  then  "Wallace"; 


OFFICE  REFERENCE  BOOKS  45 

run  your  finger  down  the  column  till  you  come  to  the  name 
"Albert,"  and  there  you  will  find  the  information. 

Of  course,  every  name  isn't  printed  at  the  top  of  the  column. 
Unusual  names  like  ''Slyde,"  for  instance,  might  appear  only 
once  in  the  directory;  in  that  case  look  at  the  top  of  the  column 
for  the  name  nearest  to  the  one  you  are  seeking. 

How  to  use  the  telephone  directory.  Suppose  the  man- 
ager asked  you  if  you  knew  how  to  look  up  a  telephone  number. 
You  would  probably  say,  "Why,  of  course."  But  there  is  a 
wrong  w^ay  and  a  right  way  to  look  up  a  telephone  number. 
One  manager  wanted  to  find  out  how  many  of  his  employees 
really  knew  how  to  find  a  telephone  number  in  the  directory. 
Out  of  ten  who  tried,  only  two  were  efficient.  The  others 
floundered  around,  and  while  they  finally  located  the  correct 
number,  they  took  three  or  four  times  as  long  as  was  necessary. 
You  should  be  able  to  find  any  number  in  10  seconds !  If  it  takes 
longer  than  that,  you  are  not  using  the  right  method.  Practice 
the  method  given  here  until  you  are  perfect. 

Anyone  who  has  learned  to  use  a  city  directory  will  find  it 
easy  to  use  a  telephone  directory.  The  purpose  of  the  telephone 
directory  is  obviously  to  furnish  telephone  numbers.  The  use 
of  the  telephone  itself  is  described  in  Chapter  V,  so  we'll  simply 
take  up  here  how  to  find  the  number. 

Like  the  city  directory,  the  telephone  directory  contains 
the  names  of  the  subscribers  arranged  in  alphabetical  order. 
But  instead  of  a  name  being  printed  in  black  type  across  the 
top  of  each  colmnn,  there  are  only  two  of  these  "index  names" 
on  a  page.  Both  of  these  names  are  at  the  top  of  the  page; 
one  is  at  the  left,  the  other  at  the  right;  the  left-hand  name 
shows  the  first  name  on  that  page,  and  the  right-hand  name 
shows  the  last  name  on  the  page.  Since  these  two  names  show 
the  first  and  last  names  on  each  page,  all  the  other  names  on 
the  page  are  between  these  two. 

For  example,  suppose  you  were  looking  for  the  name  "Wall" ; 
the  first  name  on  that  particular  page  might  be  "Walker"  and 
the  last  name  "Wallace";  therefore,  you  would  know  that  the 
name  "Wall"  must  be  on  that  page,  since  "Wall"  comes  after 
''Walker"  and  before  "Wallace." 


46  OFFICE  TRAINING  AND  STANDARDS 

When  you  have  found  the  name  you're  looking  for,  run 
your  finger  over  to  the  right  of  the  column,  where  there's  a 
number  preceded  by  a  name.  This  name  is  the  exchange  dis- 
trict where  the  man  whose  number  you're  looking  up  lives, 
and  the  number  is  his  number  in  that  exchange.  "Franklin 
5700"  means  that  his  telephone  is  in  the  Frankhn  exchange 
district  and  his  number  is  5700.  "Franklin  5700"  is,  therefore, 
the  number  you  give  the  telephone  operator. 

The  telephone  directory  also  gives  the  street  address  and 
the  business.  Some  very  large  concerns  have  what  is  called 
a  private  branch  exchange,  and  their  names  are  printed  in 
capital  letters.  Usually  only  one  number  is  given,  even  though 
there  may  be  several  telephones  in  use  by  the  concern;  that 
number  is  used  for  all  departments. 

The  classified  directories.  Practically  all  city  and  tele- 
phone directories  contain  a  classified  section  where  all  persons, 
firms,  or  corporations  conducting  business  are  listed  under  their 
business  or  profession.  A  great  many  take  advantage  of  this 
section  by  paying  something  to  have  their  names  printed  in 
heavier  type  than  others  in  the  same  list.  They  also  find  it 
sometimes  pays  to  be  listed  under  several  different  headings 
and  also  in  the  advertisers'  section.  These  classifications  make 
it  easy  to  locate  quickly  any  individual,  firm,  or  corporation, 
and  they  are  also  convenient  for  securing  quick  service  in  case 
of  emergency  calls. 

How  to  use  the  dictionary.  In  some  respects  the  dic- 
tionary is  one  of  the  most  useful  books  in  the  office.  The 
stenographer  who  does  not  have  to  use  one  constantly  is  indeed 
rare.  Probably  the  dictionary  is  used  more  often  as  an  authority 
on  spelling  and  pronunciation  than  for  any  other  purpose.  But 
to  get  the  most  value  out  of  the  office  dictionary  requires  more 
than  an  occasional  reference. 

For  one  thing,  to  be  able  to  use  words  with  their  proper 
meaning  is  a  faculty  that  must  be  cultivated  and  sometimes  the 
misuse  of  words  may  be  costly.  Indeed,  one  great  lawyer  has 
said  that  if  it  were  not  for  the  misuse  of  words,  the  lawyers 
would  starve.  Whether  this  is  true  or  not  does  not  matter 
half  so  much  as  does  your  ability  to  make  your  meaning  clear 


OFFICE  REFERENCE  BOOKS  47 

to  those  to  whom  you  are  writing  or  speaking.  Whenever  you 
are  in  doubt  about  the  meaning  of  a  word,  look  it  up.  If  you 
always  take  pains  to  make  sure  that  you  are  saying  just  what 
you  mean  to  say,  you  will  find  that  you  will  gradually  acquire 
a  most  useful  habit. 

What  you  can  do  with  synonyms.  There's  another  prof- 
itable use  for  the  dictionary  which  it  is  well  worth  while  to 
know  about.  Nearly  every  dictionary  gives  a  list  of  synonyms — 
words  which  have  almost  the  same  meaning.  Suppose,  for 
example,  that  you  are  writing  a  letter  or  an  advertisement,  and 
you  aren't  quite  satisfied  with  a  particular  word — either  it 
doesn't  mean  exactly  what  you  want  it  to  mean,  or  it  doesn't 
sound  right — anyway,  you  feel  sure  there  must  be  some  other 
word  that  will  express  your  thoughts  a  Uttle  clearer,  but  you 
can't  seem  to  recall  the  word. 

Tm-n  to  the  dictionary,  and  find  the  word  you're  using; 
after  the  definition  you'll  see  a  number  of  other  words  which 
have  almost  the  same  meaning  as  the  word  you  have  in  mind. 
Pick  out  the  one  that  best  suits  your  purpose.  If  you  are 
not  sure  that  the  new  word  will  express  your  meaning  as  you 
want  it  expressed,  look  up  the  definition  of  that  word  in  the 
dictionary  also;  eventually  you  are  sure  to  get  just  the  word 
you  want  for  your  particular  purpose. 

The  synonym  books.  For  all  ordinary  purposes  the  hst 
of  synonyms  given  in  the  dictionary  will  serve;  but  some  offices, 
particularly  advertising  and  editorial,  require  even  wider  uses 
of  words,  and  to  meet  this  requirement,  books  of  synonyms 
have  been  prepared.  These  synonym  books,  of  course,  give 
many  more  synonyms  than  the  dictionary,  and  writers  find  them 
almost  indispensable. 

Some  special  directories.  In  addition  to  these  three  books 
— the  city  directory,  the  telephone  directory,  and  the  dictionary, 
of  which  nearly  all  offices  have  copies,  some  offices  have  special 
directories  and  reference  books.  Information  about  people 
and  their  doings,  business  and  its  progress,  history  and  its 
development,  and  the  thousand  and  one  things  which  are  going 
on  all  about  us,  has  been  compiled  into  reference  books  and 
directories    covering    nearly    every    conceivable   subject.     Ref- 


48  OFFICE  TRAINING   AND  STANDARDS 

erence  books  have  become  the  principal  source  of  information 
concerning  the  people  living  in  various  communities;  their 
names;  the  business  activities  in  which  they  are  engaged; 
then-  financial,  social,  and  professional  standing;  where  they 
live,  whether  they  keep  house,  board,  or  have  rooms;  where 
they  work;  and  how  their  names  are  spelled. 

Directories  furnish  a  fairly  complete  knowledge  of  who 
makes,  sells,  buys,  or  trades  in  practically  every  line  of  mer- 
chandise or  produce.  They  give  information  concerning  all 
pubHc  institutions,  such  as  hospitals,  churches,  clubs,  societies, 
government  departments,  officials,  buildings,  parks,  playgrounds, 
schools,  and  museums.  They  list  private  institutions,  such  as 
sanitariums,  amusement  halls,  theaters,  and  hotels.  They  locate 
all  transportation  facilities,  whether  by  water,  rail,  cab,  or  taxi. 
They  direct  people  how  to  get  to  any  place  by  furnishing  a 
complete  list  of  streets;  where  they  begin,  end,  or  cross  others; 
where  in  every  block  and  between  what  streets  any  given  number 
is.  A  special  house  directory  gives  at  each  number  of  every 
street  the  people  living  or  transacting  business  there. 

Concerns  whose  customers  are  persons  of  social  distinction 
and  wealth  frequently  find  social  registers  helpful.  Most  books 
of  this  kind  contain  the  names  of  socially  prominent  people, 
arranged  alphabetically  by  name  and  also  by  sections.  This 
second  arrangement  is  helpful  to  exclusive  retail  shops. 

Then  there  are  directories  of  manufacturers,  with  lists 
classified  by  products  or  by  states  or  both;  bankers'  directories, 
showing  the  officers  and  financial  standing  of  banks  throughout 
the  country;  partnership  and  corporation  directories.  There 
are  directories  of  trade  names,  registered  and  not  registered, 
and  their  proprietors;  lists  classified  by  trades  and  professions; 
institutions,  like  schools  and  hospitals;  foreign  business  houses 
and  their  local  offices  and  representatives;  pubhcations  of  all 
kinds  arranged  by  towns,  which,  in  turn,  are  listed  by  states; 
manufacturers  who  advertise,  with  the  names  of  their  advertis- 
ing managers  and  their  agencies;  and  a  directory  of  directors, 
giving  the  names  of  du-ectors  of  corporations. 

Sources  of  mailing  lists.  Directories  may  thus  be  profit- 
ably used  in  compiling  lists  of  special  trades  or  professions;   in 


OFFICE  REFERENCE  BOOKS  49 

selecting  lists  by  occupations  according  to  whether  they  are 
high-class,  medium,  or  low-class  prospects;  in  making  up  lists 
of  persons  within,  say,  10  minutes'  walk  of  a  certain  estab- 
lishment; or  in  correcting  the  initials,  addresses,  or  occupations 
of  names  on  maihng  lists. 

One  firm  has  even  published  a  directory  of  mailing  lists, 
giving  a  description  of  each  list,  its  size  and  completeness,  the 
number  of  names,  where  it  can  be  obtained,  and  the  price.  A 
mail  order  house  might  find  a  book  like  this  useful. 

How  to  use  a  code  book.  Firms  with  foreign  connections 
or  correspondents  also  find  use  for  a  cable-code  book  which 
helps  greatly  to  cut  down  the  expense  of  cable  messages  by 
shortening  the  number  of  words  required  to  convey  the  message. 
A  code  book  is  simply  a  directory  of  code  words  arranged 
alphabetically,  each  word  being  the  code  for  a  certain  phrase. 
For  example,  the  word  "Dardejante"  may  stand  for  "Draft 
has  been  presented  for  payment,"  and  the  word  "Daricus"  may 
stand  for  "Draft  is  correct;  please  pay."  Nearly  every  kind  of 
message  is  given  in  a  code  book. 

Suppose  we  desired  to  send  a  cablegram  to  London  reading 
"Merritt  Brothers  draft  has  been  presented  for  payment  for 
two  hundred  dollars.  Shall  we  pay  for  your  account?"  If  we 
did  not  use  a  code  book  the  cablegram  would  contain  18  words 
in  addition  to  the  name,  address,  and  signature,  which  might 
bring  the  number  of  words  up  to  27.  At  31  cents  a  word, 
the  cablegram  would  cost  $8.37.  By  using  code  words  we  would 
get  this  result:  "(name)  (address)  Merritt  Brothers  Dardejante 
Morderesti  Genageld  (signature),"  making  only  eight  words, 
which  would  cost  only  $2.48,  a  saving  of  $5.89. 

Five  special  reference  books.  Among  the  special  reference 
books  there  are  five  which  are  particularly  useful.     They  are : 

(a)  Mercantile  rating  books 

(b)  Atlases  and  gazetteers 

(c)  Railroad  guides  or  pathfinders 

(d)  The  United  States  postal  guide 

(e)  Special  bulletins  and  trade  periodicals 

Credit  rating  books.  The  mercantile  rating  book  is  a 
book  giving  the  credit  ratings  of  all  persons,  corporations,  and 


COLORADO-ORI 


T  Brown  T.  S   Gro  M  4 

•  BurchUl  Albert  &  Bros  G  S  fit  Mill  D+  IJ 

•  Carroll  Edgar G  S  J3 

•  Clark  Mrs.  T.  G G  S  L  3i 

T  Dalton  John Gro  M  4 

'/.  Gorman  Mrs.  Geo Confcc,  etc.  M  4 

*  Hayes  Oscar G  S 

T  Hughes  M.  P Gro  K  3i 

*  McEachem  Mrs.  B G  S  Cb  Milly  L  3i 

S  McFarlane  Andrew Bsmith  K  3i 

♦  O'Brien  John G  S  fls  Saw  Mill  D  \\ 

•  O'Brien  Mrs.  Ruth GSJ3 

•/  Shanahan  J  D Confec,  etc  L  4 

ORISKA,  Kit  Carson  Co.-3  C 

On  C  P  R— Tel.  Ex.  Westfield,  5  M— 
St.  John,  19  M 

S  Belyea  H.  R Bsmith  M  4 

T  Crandall  James Saw  Mill 

ORTIZ,  Conejos  Co.— 1  D 
(R.  D.  from  Bathurst) 

On  C  86  G  S  R — Tel.  Stonehaven 
2  M— Ex.      Bathurst,  20  M 

•  Comeau  C.  B G  S  L  3i 

Lombard  &  Sons Comn  Mers  6b 

Grindstones  D  +  IJ 
(Br  Boston,  Mass.) 
S  O'Hearn  J.  B. Bsmith  M  4 

OSGOOD,  Weld  Co. 

♦  Richardson  Myron G  S  M  4 

OTIS,  Washington  Co.— 1  D 

On  I  C  R— Tel.  G  N  W— Ex.  Can— 
—Pop  2.945 
*/  Abraham  Theron . . .  Fruit  fls  Confec 
X  Allan  Clyde Painter 

•  Amy  Howard B  &  S  L  3J 

D  Anderson,  R.  G Furn  M  4 

T  Armstrong  Albert Gro  G  3 

Arnburg  Mrs.  Crisella Rest  M  4 

Arsenault  David Meat  M  4 

T  Baird  fls  Sons  — V/hol  Gro  C  1 J 

(Br  St  John) 

♦  Bannon  M.  J G  SG3 

3  Bell  A.  J Fum.  etc     3 

I  Benson  R.  M Coal  L  3} 

V  Bethune  Geo Elec  Supply  M4 

▲  Blain  Miss  Evelyn Milly  M  4 

ABrander  Richard DGG  3 

*/  Brightman  Henry  H Bak  L  3 J 

*  Brotsky  Ludap-       - GSM 


OURAY,  Ouray  Co.— 1  C 

On  I  C  R— Tel  G  N  W— Ex.  Cai 
Jacquet  River— Pop  200 

II  McKenzie  Silas.  , Flour 

n  McMillan  Henry Saw  Mill 

•  McMillan  Lewis G  S 

♦  Windsor  David  (Mrs.  A.  I.) G 

OVID,  Sedgwick  Co.— 3  C 
(R.  D.  from  Lepreau) 
On  C  P  R— Tel.  Ex.        St.  Geori 

♦  Chittick  Charles G JS 

», Giles  Thos GSN 

*  Mulherin  Charles GSK 

~\  Smith  Rud6"ph Saw  Mill 

OXFORD,  UPlata  Co.— 3  D 

X,  Tel.  Ex.        Sussex,  7  M — Pop 

S  Chapman  Peter Carriagemkr  N 

"1  Hartt  Lyle S&G  Mills  K 

*  Keith  R  8s  Co GSI 

T  Mace  Samuel Gro  I 

II  OldfieldH.  S Grist  Mill  1 

*  Tamlyn  H.  P GSI 

PADRONI,  Logan  Co.-I  D 

On  I  C  R— Tel.  Ex.  Petit  Rocher- 

Bathurst 

♦  Doucet  Mrs.  John  P.  H G  S  ^ 

PAJODA,  Routt  Co.— 2  D 

X.  Tel.  Ex.        Newcastle,  16  M 
McColm  Mollie Fish  I- 

POGOSA  JUNCTION,  Archuleta  Co 
(R.  D.  to  Midland) 

On  I  C  R  and  N  B  C  8s  R— Tel.  M 
Ex.  Can—    —Pop  300 

•  Allaby  Co..  Ltd OS! 

C  Campbell  Mrs.  William Hotel  I 

S  Carson  Roscoe Bsmith  I 

Folkins  Perry Meat  ^ 

C  Foohey  J.  L Hotel  &  Liv(d) 

*  Gallnsher  8b  Co G  S  fls  Lbr 

*  Harmcr  R.  P G  S  Ss  Lbr 

S  Hem'-, worth  P.  D Bsmith 

*  Howe  Walker G  S 

S  Innis  S.  N Carriagemkr  M] 

S  Loughery  N.  O Liv 

•  Myers  Alfred G  S  8s  Lbr 

(•  Patriquin  R.  A Garage  J| 

P  Reynolds  Arthur Creamero 

T  Robertt^on  Douglas..  .,_^. Gro 


FIGURE  14:  This  page  is  taken  from  Dun's  Register.  Suppose  Henry  H.  Bright- 
man  of  Otis,  Colorado,  should  apply  to  you  for  credit.  To  look  up  his  credit  rating 
you  first  find  "Colorado."  after  that  "Otis,"  and  after  that  "Brightman."  After 
his  name  appear  the  symbols  L  SVi.     The  key  to  these  symbols  is  shown  on  page  51. 

50 


KEY  TO  RATINGS 

Subscribers  are  urged  to  consult  the  latest  detailed  reports 
in  our  possession  in  every  case  involving  credit.  Over  4,000 
changes  are  made  each  business  day. 


Left-hand  column 
Estimated  pecuniary  strength 


Right-hand  column 

General  credit 

High    Good    Fair    Limited 


Aa 

Over 

$1,000^000 

Al 

1 

H 

2 

A  + 

Over 

750,000 

Al 

1 

n 

2 

A 

$500,000  to 

750,000 

Al 

1 

n 

2 

B  + 

300,000  to 

500,000 

1 

n 

2 

2\ 

B 

200,000  to 

300,000 

1 

n 

2 

2\ 

c+ 

125,000  to 

200,000 

1 

n 

2 

2\ 

C 

75,000  to 

125,000 

n 

2 

2h 

3 

D  + 

50.000  to 

75,000 

u 

2 

2h 

3 

D 

35,000  to 

50,000 

u 

2 

2\ 

3 

E 

20,000  to 

35,000 

2 

2b 

3 

3i 

F 

10,000  to 

20,000 

2i 

3 

3i 

4 

G 

5,000  to 

10,000 

3 

3i 

4 

H 

3,000  to 

5,000 

3 

3i 

4 

J 

2,000  to 

3,000 

3 

3i 

4 

K 

1,000  to 

2,000 

3 

3§ 

4 

L 

500  to 

1,000 

3| 

4 

M 

Less  than 

500 

3i 

4 

Where    only    a) 

credit  rating  ap-) 

pears,  this    line)  12  3  4 

of  credit   desig-) 

nation   appears.) 

(d)  Where  an  italic  d  in  parenthesis  precedes  a  rating,  it 
is  an  indication  that  one  or  more  of  the  partners  in  the  firm  are 
liable  in  another  or  other  firms,  and  the  responsibility  is  in 
that  sense  divided,  thus:  (d)  B  +  1. 

The  absence  of  a  rating,  whether  of  capital  or  credit,  indi- 
cates those  whose  business  and  investments  render  it  difficult 
to  rate  satisfactorily.  We  therefore  prefer,  in  justice  to  these, 
to  give  the  detailed  reports  on  record  at  our  offices.  The  rat- 
ing of  branch  houses  should  always  be  looked  up  at  headquar- 
ters also. 


FIGURE  15:  Here  is  the  key  to  the  ratings  given  in  Dun's  Register.  You  want  to 
find  out  what  L  Z^z,  the  symbols  describing  Henry  H.  Brightman's  financial  condi. 
tion,  mean.  By  glancing  down  the  column  to  the  left  you  find  that  his  financial 
strength  is  from  $500  to  $1,000 — and  in  the  right-hand  column  that  his  credit  is  fair- 

51 


52  OFFICE  TRAINING  AND  STANDARDS 

firms  doing  business.  These  ratings  are  determined  by  mer- 
cantile agencies  which  make  a  business  of  collecting  and  arrang- 
ing credit  information. 

Since  over  90%  of  the  business  of  our  country  is  said  to  be 
conducted  on  a  credit  basis,  business  men  can  reduce  losses  in 
bad  debts  by  eliminating  guesswork  in  granting  credit  privileges. 
Every  business  man  naturally  wants  to  keep  his  credit  ratings 
as  high  as  possible.  It  is  also  essential  for  wholesalers  and 
manufacturers  to  obtain  the  most  rehable  information  possible 
concerning  the  financial  standing  and  integrity  of  their  cus- 
tomers and  their  prospective  customers. 

The  subscription  to  the  rating  books  also  usually  includes 
a  number  of  special  repojts.  The  reference  books  are  usually 
issued  every  three  months,  but  special  reports  can  ordinarily 
be  obtained  at  almost  any  time.  If  a  merchant  asks  a  whole- 
saler to  sell  him  goods  on  time,  the  wholesaler  obtains  a  report 
concerning  the  amount  the  merchant  has  invested  in  his  busi- 
ness, his  estimated  wealth,  the  time  engaged  in  business,  and 
the  probabihty  of  success  or  failure;  if  the  report  is  satisfac- 
tory, the  credit  is  allowed. 

It  is  often  advisable  to  consult  the  latest  statistics  when 
looking  up  the  rating  of  any  firm,  since  it  is  estimated  that 
over  4,000  changes  in  ratings  are  made  daily  by  the  various 
mercantile  agencies. 

The  names  in  the  reference  books  are  arranged  alphabetically 
according  to  states  and  cities.  If  you  wish  to  look  up  the  finan- 
cial standing  of  Hiram  R.  Barton,  of  Lincoln,  Nebraska,  you 
would  first  find  Nebraska  and  then  the  city  of  Lincoln.  Oppo- 
site his  name  you  will  see  the  kind  of  business  and  the  letters 
and  figures  signifying  Barton's  capital  rating  and  his  credit.  On 
page  50  is  shown  a  sample  page  of  mercantile  ratings  from  Dun's 
Register  and  on  page  51  is  the  key  to  the  ratings.  You  will 
find  it  interesting  and  perhaps  profitable  to  practice  looking  up 
ratings  until  you  can  do  it  readily. 

Atlases  and  gazetteers.  If  you  have  frequent  occasion  to 
look  up  the  geographical  location  of  cities  and  towns,  and  such 
points  as  relative  distances  between  places,  a  good  atlas  and 
a  gazetteer  will  serve  your  purpose. 


OFFICE  REFERENCE  BOOKS  53 

The  railroad  guide.  The  railroad  guide  or  pathfinder,  as 
it  is  sometimes  called,  is  another  source  of  valuable  information, 
especially  for  sales  departments  where  the  salesmen's  trips  must 
be  scheduled  and  sometimes  close  connections  with  trains  made. 
The  pathfinder  usually  contains  the  running  time  of  trains  on 
all  the  railroads  in  the  United  States;  a  man  in  San  Francisco 
could  map  out  a  trip  clear  across  the  country  to  Boston,  and 
know  just  M^hat  trains  to  take  at  each  transfer  point,  as  well  as 
stopovers,  before  he  even  started. 

The  U.  S.  postal  guide.  The  last  of  the  special  reference 
books  on  our  list  is  the  United  States  Postal  Guide,  published 
in  July  of  each  year  by  the  Post  Office  Department  at  Wash- 
ington. This  book,  which  is  kept  up  to  date  by  monthly  supple- 
ments, contains  not  only  comprehensive  information  about 
domestic  and  foreign  mail  matter,  together  with  rules  and  regu- 
lations governing  the  various  classes  of  mail  matter,  but  also 
complete  fists  of  ah  the  postoffices  in  the  United  States,  arranged 
alphabetically  by  states,  by  counties,  by  classes,  and  by  names. 

The  monthly  supplements  contain  the  latest  changes  in 
postoffices  and  additional  information  about  the  postal  ser\'ice, 
particularly  with  reference  to  new  rufings  and  changes  in  the 
old  rules.  The  guide  is  used  to  advantage  by  most  concerns 
in  their  maifing  and  shipping  departments,  to  check  addresses, 
verify  postage  and  to  enable  them  to  comply  with  the  require- 
ments of  the  Post  Office  Department. 

Special  bulletins  and  guides.  Although  we  have  covered 
the  scope  of  the  principal  reference  books  hkely  to  be  used  in 
business  oflftces,  nevertheless  one  extremely  valuable  source  of 
business  information  remains  to  be  considered.  This  source 
consists  of  special  bulletins,  trade,  technical,  financial,  and 
business  periodicals,  and  various  kinds  of  guides.  The  special 
bulletins  and  guides  usually  contain  current  information  that 
is  continually  changing  in  character,  such  as  prices  of  mer- 
chandise, stock  and  bond  quotations,  dividend  and  interest 
dates,  special  and  general  meetings,  steamship  saifings,  earnings 
of  corporations,  and  so  forth. 

Trade  periodicals  and  business  magazines.  Each  trade 
has  its  own  periodical,  containing  the  latest  news  about  the 


54  OFFICE  TRAINING   AND  STANDARDS 

trade  and  also  any  special  information  that  may  be  of  value. 
One  advantage  of  the  trade  periodicals  is  that  they  enable  their 
subscribers  to  keep  up  to  date  and  posted  on  happenings  in 
their  particular  trades. 

Then  there  are  general  business  magazines,  which  contain 
material  that  is  not  restricted  to  any  special  field,  but  is  usually 
adaptable  to  any  business.  A  careful  study  of  the  best  of  these 
periodicals  will  help  to  develop  many  valuable  ideas  that  might 
otherwise  be  lost  forever. 

One  more  word  about  reference  books.  It  is  not  necessary 
to  know  everything,  but  the  more  we  know  the  more  useful 
we  may  become;  and  the  next  best  thing  to  knowing  anything 
is  to  know  how  and  where  to  find  it.  There  are  many  ofiice 
workers  who  do  not  know  how  to  use  the  index  in  dictionaries 
and  other  reference  books  so  as  to  find  quickly  the  desired  word, 
name,  or  data.  Practice  searching  for  different  kinds  of  in- 
formation so  that  you  can  find  what  is  wanted  when  it  is  wanted 
and  you  will  make  yourself  a  more  valuable  assistant  in  any 
office,  or  indeed,  in  many  other  situations. 

STANDARD  QUESTIONS 

Sources  of  information 

1.  Who  compiled  the  first  unabridged  dictionary  in  the  United  States? 

2.  Is  the  dictionary  a  necessary  office  reference  book? 

3.  "Wliat  kind  of  information  is  found  in  a  thesaurus? 

4.  ^\^lat  kind  of  information  is  found  in  a  gazetteer? 

5.  What  kind  of  information  is  found  in  a  year  book? 

6.  ^\^lat  kind  of  information  is  found  in  a  Who's  \Mio? 

7.  What  kind  of  information  is  found  in  business  journals? 

8.  What  kind  of  information  is  found  in  a  credit  rating  book? 

9.  ^\^lat  kind  of  information  is  found  in  an  encyclopedia? 

10.  \Miat  are  synonyms?    Give  examples. 

11.  WTiat  are  homonyms?    Give  examples. 

12.  What  are  antonyms?    Give  examples. 

13.  \\niy  should  we  be  strictly  accurate  in  the  use  of  our  language  in 
business  transactions? 

14.  How  would  we  find  out  where  a  prominent  man  was  born  and  what 
he  did? 

15      How  would  you  find  out  the  fastest  route  for  sending  mail? 
16.    How  would  you  find  out  the  best  express  company  by  which  to  make 
a  shipment? 


OFFICE  REFERENCE  BOOKS  55 

17.  How  would  you  find  out  the  best  freight  route  for  shipping  goods? 

18.  How  would  you  find  out  about  the  financial  standing  of  a  customer? 

19.  In  what  way  is  a  gazetteer  of  use  in  an  office? 

20.  Of  what  value  is  an  atlas  in  an  officef 

21.  Why  is  it  important  to  know  where  raw  materials  are  produced? 

22.  Why  it  is  important  to  know  the  principal  manufacturing  centers? 

23.  Why  is  it  important  to  know  the  chief  shipping  centers? 

24.  In  what  way  is  broad  general  information  of  value? 

25.  How  would  you  find  in  an  atlas  the  location  of  a  city? 

26.  Where  would  j^ou  find  the  leading  facts  about  a  city? 

27.  Where  would  you  look  for  the  biography  of  a  prominent  politician? 

28.  How  would  you  use  the  index  in  an  encyclopedia? 

29.  What  are  the  two  largest  credit  rating  agencies  of  the  United  State.-? 

30.  How  does  the  country  merchant  secure  a  good  credit  rating? 

31.  Why  is  it  important  for  any  merchant  to  have  a  good  credit  rating? 

32.  Why  is  it  important  for  the  wholesale  merchant  to  know  the  capital  and 
credit  rating  of  customers? 

33.  What  merchants  have  no  capital  or  credit  rating? 

34.  Can  the  country  merchant  without  a  capital  or  credit  rating  buy 
goods  from  the  wholesale  merchants? 

35.  Under  what  conditions  do  mercantile  agencies  furnish  private  reports 
on  ratings? 

36.  How  do  merchants  in  country  towns  and  cities  get  the  credit  standing 
of  private  individuals? 

37.  About  what  percentage  of  business  is  transacted  on  a  credit  basis? 

38.  Can  all  business  be  conducted  on  a  cash  basis? 

39.  What  is  the  highest  rating  a  firm  can  have  according  to  the  Dun  key? 

40.  What  is  the  lowest  rating  a  firm  or  individual  can  have? 

41.  What  would  the  rating  "2"  indicate? 

42.  What  would  the  rating  "A  1 "  indicate? 

43.  What  would  the  rating  "(d)  B+1"  indicate? 

44.  How  would  you  find  a  name  in  a  credit  rating  book? 

45.  Does  the  commercial  agency  guarantee  that  a  man  is  honest  or  will 
pay  his  bills? 

46.  Does  the  agency  guarantee  that  a  man  is  worth  so  much  money? 

47.  Does  the  credit  man  of  a  wholesale  house  depend  entirely  on  the 
report  of  a  commercial  agency  in  deciding  upon  the  credit  of  a  customer? 

48.  What  are  Dun's  notification  sheets? 

STANDARD  QUESTIONS 

How  to  use  directories 

1.  State  the  object  of  any  directory. 

2.  Is  the  directory  a  public  convenience  or  a  necessity? 

3.  In  early  days  before  directories  were  used  how  did  the  people  obtain 
desired  information? 


56  OFFICE  TRAINING   AND  STANDARDS 

4.  What  was  the  first  city  directory  published  in  the  United  States? 

5.  WTiat  information  is  contained  in  a  directory? 

6.  How  is  the  directory  of  value  when  you  wish  to  buy  something?    To 
sell  something?    To  call  a  doctor? 

7.  In  case  the  water  pipes  spring  a  leak  how  would  you  find  the  nearest 
plumber? 

8.  How  would  you  locate  by  telephone  a  person  at  his  place  of  work 
when  he  had  no  telephone? 

9.  How  would  you  find  what  cross  street  is  nearest  a  given  address? 

10.  How  would  you  find  the  location  of  a  prominent  office  building? 

11.  How  would  you  locate  a  small  corporation? 

12.  How  would  you  locate  the  business  address  and  firm  name  if  you 
knew  a  person's  name? 

13.  How  would  you  find  the  name  of  the  person  if  you  knew  the  street 
number? 

14.  How  would  you  find  out  the  occupation  and  whether  a  person  was 
rooming,  boarding,  or  keeping  house? 

15.  How  would  you  find  out  where  to  go  to  pay  your  taxes?  To  record  a 
deed?  To  safely  deposit  your  money?  To  buy  a  railroad  ticket?  To  rent  an 
apartment?    To  ship  goods  by  express  or  freight? 

16.  If  you  came  into  a  town  as  a  stranger  where  would  you  get  access  to  a 
d' rectory? 

17.  How  would  you  find  out  where  to  rent  a  room  near  a  school? 

18.  How  would  you  find  out  the  location  of  the  bank  nearest  to  your 
place  of  residence? 

19.  How  would  you  locate  the  nearest  church  to  your  place  of  residence? 

20.  How  would  you  find  out  the  salary  of  the  mayor  of  your  city? 

21.  How  would  you  find  out  the  address  of  the  Board  of  Health?  Board 
of  Education?     Board  of  Aldermen? 

22.  How  would  you  find  out  how  many  railroads  entered  your  city? 

23.  What  is  the  value  of  classified  business  directories? 

24.  Of  what  value  would  a  classified  directory  be  if  you  were  marketing  a 
special  feed  suitable  for  horses? 

25.  If  you  were  marketing  a  high-grade  article  how  would  the  directory 
aid  you  in  obtaining  a  mailing  list? 

26.  Should  you  wish  to  reach  the  medium  class  of  trade  how  would  the 
directories  be  of  service? 

27.  Of  what  value  are  directories  several  years  old? 

28.  Why  should  the  directory  in  general  use  be  up  to  date? 

29.  How  are  directories  of  use  in  correcting  mailing  lists? 

30.  How  could  you  obtain  a  list  of  individuals  who  were  within  a  five 
minutes'  walk  from  a  certain  ofl^ice? 

31.  Of  what  special  use  are  directories  in  a  lawyer's  office? 

32.  Of  what  special  use  are  directories  in  an  instalment  house  office? 

33.  How  could  you  find  the  name  of  a  customer  whose  name  was  lost  or 
could  not  be  read,  if  you  knew  the  city  and  street  number? 


OFFICE  REFERENCE  BOOKS  57 

34.  Suppose  the  state  was  missing  but  you  knew  the  name  of  the  city  was 
Portland;  how  would  you  find  the  address? 

35.  How  would  you  find  out  the  best  transportation  service  in  a  city? 

36.  What  are  the  advantages  of  having  special  corporation,  professional, 
institutional,  and  social  directories? 

37.  Why  is  not  a  telephone  directory  as  serviceable  as  a  general  city 
directory? 

38.  What  use  would  you  make  of  directories  in  case  of  accident,  fire,  or 
burglary? 

39.  What  information  is  found  in  Blue  Books? 

40.  What  use  cou'd  you  make  of  directories  in  selecting  a  location  for  a 
tea  room? 

STANDARD  EXERCISES 
Suggestive  search  questions 
1     WTiat  were  some  of  the  early  kinds  of  manufacturing? 

2.  What  has  been  the  influence  of  the  invention  of  machinery? 

3.  What  has  been  the  nfluence  of  the  increase  in  population? 

4.  What  has  been  the  influence  of  the  improvement  in  transportation? 

5.  WTiat  factories  are  usuaUy  located  near  the  raw  material? 

6.  What  factories  are  usually  located  near  the  distribution  market? 

7.  What  factories  import  their  raw  material? 

8.  Why  does  the  United  States  import  her  raw  silk  while  Italy  grows 
most  of  hers? 

9.  Why  do  we  ship  iron  ore  from  the  mines  instead  of  manufacturing 
steel  products  at  the  mines? 

10.  Why  does  Australia  not  manufacture  much  steel  when  she  has  plenty 
of  iron  ore  and  fuel? 

11.  Why  does  England  import  her  wool  and  cotton? 

12.  Why  do  we  have  more  flour  mills  than  sugar  mills  when  we  import 
so  much  sugar? 

13.  Why  is  it  an  advantage  to  replace  wooden  cars  and  bridges  with  steel 
and  concrete? 

14.  Why  is  New  Jersey  an  important  manufacturing  state  when  it  has 
little  fuel  or  water  power,  and  imports  most  of  the  raw  material  used? 

15.  Why  are  there  more  important  cities  on  the  Atlant'c  coast  than  on 
the  Pacific  coast  of  the  United  States? 

16.  Why  are  there  more  cities  on  the  United  States  side  of  the  Great 
Lakes  than  on  the  Canadian  side? 

17.  Why  does  West  Virginia  rank  low  as  a  manufacturing  state  when  it 
produces  much  coal,  iron  ore,  natural  gas,  and  petroleum? 

18.  Why  is  three-fourths  of  all  the  manufacturing  of  the  United  States 
carried  on  east  of  the  Mississippi  River  and  north  of  the  Mason  and  Dixon  line? 

19.  Which  is  the  most  important  industry  of  the  United  States? 

20.  According  to  value  of  products,  what  is  the  leading  manufacturing 
industry  of  the  United  States? 


68  OFFICE  TRAINING   AND  STANDARDS 

21.  What  industry  has  showTi  the  largest  percentage  of  increase  in  busi- 
ness during  the  past  year? 

22.  Are  there  greater  business  opportunities  in  the  manufacturing  or  mer- 
cantile lines  in  the  United  States? 

23.  Why  does  South  Africa  do  little  manufacturing? 

24.  Why  are  wages  lower  in  England  than  in  Canada? 

25.  Could  a  manufacturer  produce  cheaper  goods  in  a  rich  country  than 
in  a  poor  one? 

26.  Compare  the  importance  of  water  power  and  coal  in  the  development  of 
manufacturing  in  New  England  and  Pennsylvania? 

27.  Why  is  water  power  likely  to  increase  in  importance? 

28.  Is  the  profit-sharing  plan  for  employees  likely  to  produce  greater 
efl&ciency  in  the  working  force? 

29  Why  does  the  average  person  stand  a  better  chance  to  succeed  in 
business  than  in  a  profession? 

30.  What  are  some  of  the  advantages  of  piece  work? 

31.  What  are  some  of  the  advantages  of  cooperation? 

32.  Should  there  be  a  struggle  between  capital  and  labor? 

33.  What  is  the  greatest  manufacturing  country  of  the  world? 

34.  WTiat  country  manufactures  the  best  linen? 

35.  What  country  manufactures  the  best  leather? 

36.  "What  country  manufactures  the  best  cheese? 

37.  What  country  manufactures  the  best  dyes? 

38.  What  country  manufactures  the  best  china? 

39.  What  country  manufactures  the  best  cutlery? 

40.  What  country  manufactures  the  best  paper? 

41.  What  country  manufactures  the  best  wine? 

42.  WTiat  country  manufactures  the  most  sugar? 

43.  What  country  manufactures  the  most  woolens? 

44.  WTiat  country  manufactures  the  most  silk? 

45.  What  country  manufactures  the  most  cotton? 


CHAPTER  V 

USING  THE  TELEPHONE  AND  TELEGRAPH 
TO  BEST  ADVANTAGE 

SCIENCE  has  placed  at  our  disposal  two  great  time  savers— 
the  telephone  and  the  telegraph.  Nearly  every  business 
office  has  a  telephone,  and  the  telegraph  is  often  used 
where  the  expense  of  telephoning  would  not  be  warranted. 
The  telephone  gives  almost  immediate  communication,  while 
the  telegraph  is  a  Uttle  slower,  but  not  quite  so  costly  for  long 
distances.  To  learn  how  to  make  the  best  and  most  profitable 
use  of  each  of  these  devices,  when  to  use  the  one  and  when  to 
use  the  other,  or  when  not  to  use  either,  we  will  take  up  each, 
starting  with  the  telephone,  and  beanng  in  mind  that  the  object 
in  both  cases  is  to  save  time. 

Which  should  be  used?  It  costs  money  to  use  either  the 
telephone  or  the  telegraph.  If  the  time  saved  is  not  worth 
the  cost,  then  it  is  not  profitable  either  to  telephone  or  telegraph. 
This  refers  more  particularly  to  long  distance  telephone  calls 
than  to  local  calls,  but  it  is  well  worth  bearing  in  mind  at  all 
times.  It  takes  only  10  dimes  to  make  a  dollar  and  every  dime 
saved  represents  10%  on  each  dollar  of  capital  invested. 

Since  the  main  object  of  all  business  is  to  make  a  profit, 
all  unnecessary  expenditures  must  be  carefully  watched,  and 
the  telephone  and  telegraph  furnish  an  easy  way  of  spending 
money  unprofitably.  But  where  the  sHghtest  doubt  exists  as 
to  whether  to  telephone  or  to  telegraph,  it  is  better  to  decide 
in  favor  of  the  telephone  every  time. 

The  proper  way  to  telephone.  There  are,  however,  other 
ways  of  saving  time  in  using  the  telephone  than  the  mere  anni- 
hilation of  distance.  Considerable  time  may  be  saved  by  know- 
ing how  to  use  the  telephone  properly.     In  the  previous  chapter 

59 


60  OFFICE  TRAINING  AND  STANDARDS 

we  have  learned  how  to  find  the  telephone  number.  In  using  the 
telephone,  therefore,  we  have  only  three  things  to  consider — 
the  use  of  the  instrument,  making  a  call,  and  answering  a  call. 

In  using  the  instrument,  lift  the  receiver  from  the  hook 
and  place  it  closely  against  your  ear;  put  your  lips  directly  in 
front  of  and  close  to  the  mouthpiece  of  the  transmitter,  and 
speak  in  a  moderate  tone  of  voice,  enunciating  your  words 
distinctly.     Do  not  talk  fast. 

To  make  a  telephone  call  take  the  receiver  from  the  hook 
and  place  it  at  your  ear.  The  operator  will  say:  "Number 
please?"  Give  the  exchange  name  and  number  of  the  sub- 
scriber w'anted  and  the  operator  will  repeat  them  to  avoid 
mistakes.  Remain  with  the  receiver  at  your  ear  until  an  answer 
is  received.       This  courtesy  is  due  the  operator. 

If  the  desired  line  is  busy,  the  "busy"  signal  (an  interrupted, 
buzzing  sound),  or  the  operator,  will  notify  you  of  that  fact. 
This  means  that  the  Hne  called  for  is  connected  with  some  other 
line.  Hang  up  the  receiver  and  wait  a  few  minutes  before 
trying  that  number  again. 

How  to  call  a  number.  In  giving  the  number  to  the 
operator,  state  the  name  of  the  exchange  first,  and  then  the 
number,  like  this:  Franklin  5700  (FrankUn,  five,  seven  hundred). 
Each  figure  of  the  number  should  be  spoken  distinctly,  making 
a  pause  after  the  name  of  the  exchange,  and  after  the  first  two 
figures,  like  this:  "Lincoln,  two  three,  four  six"  (Lincoln  2346). 
Where  the  number  ends  in  two  zeros,  use  the  word  "hundred," 
as  above;  where  it  ends  in  three  ciphers,  use  the  word  "thou- 
sand," as  "Main,  three  thousand"  (Main  300(t). 

Your  object  in  making  these  pauses  is  to  help  the  operator 
make  the  connection  more  quickly.  The  first  tw^o  numbers 
represent  the  number  of  the  switchboard,  and  the  last  two 
numbers  represent  the  number  on  that  switchboard.  In  Lincoln 
2346,  the  subscriber's  telephone  is  number  46  on  switchboard 
number  23  in  the  Lincoln  exchange. 

Speaking  the  numbers  this  way  also  helps  you  to  memorize 
the  numbers  themselves,  since  it  is  much  easier  to  carry  two 
numbers  of  two  figures  in  your  mind  than  one  number  of  three 
or  four  figures. 


FIGURE  16:  This  is  the  way  they  telephoned  in  1879.  This  switchboard  is 
one  of  the  first  which  Alexander  Bell  estabHshed  in  New  York  City.  '  'A  crank 
who  says  he  can  talk  through  a  wire,"  is  the  way  the  newspapers  described  him  then. 


FIGURE  17:  This  modern  telephone  exchange'  doesn't  look  very  much  like  the 
one  shown  at  the  top  of  the  page.  You  will  notice  that  in  this  photograph  there  is 
not  a  man  or  boy  in  the  room,  while  in  1879  there  were  no  women  operators  at  all. 

61 


FIGURE  18:    The  young  woman  shown      FIGURE  19:     Hold  the  receiver  firmly 

here  operates  this  switchboard  in  addi-       to   the  ear   with  the  left  hand.    Leave 
tion  to  doing  stenographic  work.  the  right  hand  free  to  take  notes. 


FIGURE  20:     Here  are  four  devices  for  interhouse  communication.     Name  each 

one  that  is  shown  in  the  picture  and  tell  how  it  is  used.     Describe  in  a  few  words- 

just  what  the  man  is  doing  and  why  you  think  he  is  doing  it. 


THE  TELEPHONE  AND  THE  TELEGRAPH     63 

How  to  answer  the  telephone.  In  answering  telephone 
calls  do  not  say  "Hello,"  but  give  your  name  or  the  name  of 
your  firm,  or  both,  such  as  "Berkeley  and  Company,  Lee  talk- 
ing"; or  "Shipping  Department."  Some  firms  ask  their 
employees  in  answering  calls  to  give  simply  the  telephone  num- 
ber. Whatever  way  the  manager  instructs  should  of  course 
be  followed,  the  object  always  being  to  save  time,  both  yours 
and  that  of  the  person  calling. 

In  the  front  part  of  the  telephone  directory  are  given  addi- 
tional suggestions  for  using  the  telephone,  as  well  as  for  making 
long  distance  calls,  and  you  should  familiarize  yourself  with  this 
information,  so  that  you  can  use  it  when  needed. 

Answering  calls  for  your  employer.  In  many  small 
offices  one  person  may  handle  all  the  incoming  telephone  calls. 
That  person  may  have  to  give  information  requested  over  the 
telephone,  or  she  may  have  to  "relay"  the  calls  to  others  in  the 
office.  Many  executives  dislike  to  be  interrupted  in  their  work, 
and  they  instruct  their  assistants  not  to  disturb  them  unless 
the  call  is  really  important.  The  assistant  often  has  to  decide 
whether  or  not  she  shall  call  her  employer  to  the  telephone. 

In  one  office  the  assistant  first  finds  out  the  name  of  the 
caller  and  the  nature  of  his  business,  and  then  decides  whether 
it  is  important  enough  to  let  him  talk  with  the  manager.  Very 
often  she  can  handle  the  business  herself,  and  her  employer 
much  prefers  that  she  should.  It  saves  his  time  and  thereby 
makes  her  much  more  valuable  to  him. 

Handling  interhouse  calls.  Many  larger  offices  having 
numerous  telephones  handle  all  calls,  both  within  the  house 
and  outside,  through  a  central  switchboard  which  may  be 
small  enough  for  a  stenographer  to  handle,  or  large  enough  to 
be  called  a  "private  branch  exchange,"  with  several  operators. 
A  central  switchboard  like  this  makes  it  possible  for  the  inter- 
house calls  to  be  handled  expeditiously  and  at  the  same  time 
permits  a  control  on  the  outside  calls. 

Two  other  methods  of  interhouse  communication  are  worthy 
of  mention.  One  of  them  is  somewhat  like  the  telephone, 
except  that  it  is  much  more  sensitive,  and  does  not  require  any 
"central"    operator.     In   any    dictograph    system,    as   one   of 


64  OFFICE  TRAINING  AND  STANDARDS 

these  methods  is  called,  there  are  two  or  more  "stations,"  each 
station  being  a  complete  instrument,  which  looks  something 
like  a  box.  One  of  the  advantages  of  the  dictograph  is  the 
ability  to  speak  in  a  natural  tone  of  voice  without  holding  the 
receiver  to  the  ear.  Of  course  it  is  limited  to  interhouse  use 
and  is  much  more  expensive  than  the  telephone. 

One  way  of  getting  confidential  information.  Some- 
times there  are  occasions  when  it  is  desirable  to  get  information 
without  using  the  telephone,  or  without  divulging  the  fact  that 
you  are  getting  the  information.  In  some  banks,  for  instance, 
if  you  present  a  check  to  be  certified,  perhaps  you  will  notice 
that  the  teller  goes  to  a  corner  of  his  cage  and  makes  a  notation. 
Then  he  prepares  one  or  two  forms  to  sign  and  after  a  few  min- 
utes he  goes  to  the  corner  again  and  looks  at  what  is  written 
there.  He  proceeds  next  to  certify  your  check,  or  to  tell  you 
that  he  cannot  certify  it. 

What  the  teller  did  was  to  write  on  the  telautograph,  an 
electric  instrument  which  transmits  the  actual  writing  to  another 
department  of  the  bank,  where  your  account  was  looked  up,  to 
see  if  your  balance  was  large  enough  to  permit  him  to  certify 
your  check,  or  obtain  any  other  interesting  information. 

How  the  telegraph  facilitates  business.  While  the  tele- 
phone has  become  the  personal  servant  of  business,  the  telegraph 
has  also  developed  rapidly,  and  the  combination  of  the  two 
kinds  of  communication  makes  possible  the  rapid  and  intelligent 
interchange  of  information  of  all  kinds. 

What  it  costs  to  telegraph.  Two  particular  points  of  dis- 
tinction stand  out  between  the  telephone  and  the  telegraph. 
Conversation  over  the  telephone  may  be  more  or  less  unlimited. 
You  may  ask  or  answer  as  many  questions  as  you  like,  and  the 
connection  is  practically  instantaneous.  An  ordinary  business 
conversation  that  lasts  over  15  minutes  is  exceptional. 

With  the  telegraph,  however,  the  message  is  first  written, 
and  then  sent  over  the  wire,  and  you  must  wait  for  a  reply. 
Each  word  of  a  telegram,  except  the  addi-ess  and  signature,  is 
charged  for,  although  any  number  of  words  up  to  10  may  be 
sent  for  a  specified  charge.  Each  word  over  10  is  charged  for 
at  so  much  a  word. 


THE  TELEPHONE  AND  THE  TELEGRAPH     65 

Right  here  is  the  first  opportunity  to  stop  unnecessary  tele- 
gram costs — whenever  possible,  without  sacrificing  the  sense, 
limit  the  number  of  words  in  the  message  to  10.  The  address 
and  signature  are  not  counted  in  a  telegram,  as  in  a  cable  mes- 
sage. Of  course  the  longer  the  distance,  the  greater  the  cost, 
and  the  proportionately  greater  saving  by  limiting  the  number 
of  words.  Few  ordinary  messages  really  require  more  than 
10  words.  Unnecessary  and  meaningless  words,  such  as  "a" 
and  "the"  and  "are,"  may  often  be  omitted. 

Writing  out  your  telegram.  Perhaps  the  easiest  way  to 
prepare  a  telegram  is  to  write  out  what  you  want  to  say,  and 
then  cross  out  such  unnecessary  words  as  do  not  affect  the 
meaning.  For  instance,  suppose  we  have  just  received  a  request 
from  one  of  our  largest  customers  in  a  city  1,000  miles  away 
for  immediate  specifications  and  quotations  on  some  of  ovr 
products.  It  happens  that  one  of  our  salesmen  is  near  that 
city  but  does  not  expect  to  go  there  until  next  week. 

We  have  a  choice  of  two  actions — either  to  "wire"  our 
quotations  direct  to  the  customer,  or  to  wire  our  salesman  to 
stop  work  where  he  is  and  go  to  the  city  where  our  customer 
is  located.  By  calling  personally  the  salesman  gets  the  oppor- 
tunity to  answer  any  questions  the  customer  may  wish  to  ask, 
and  he  can  also  help  the  customer  in  ordering. 

Accordingly  we  decide  to  wire  the  salesman.  We  could 
probably  write  something  like  this: 

"Please  leave  your  work  in  Albany  and  go  to  New  York 
immediately,  and  call  upon  Mr.  D.  E.  Peterson,  who  wants 
us  to  give  him  specifications  and  quotations  on  our  numbers 
8,  23,  and  35."  This  makes  37  words.  By  cutting  out  un- 
necessary words  we  can  reduce  this  to : 

"See  Peterson  Newyork  immediately  numbers  eight  twenty 
three  thirty  five."     This  makes  exactly  10  words. 

Notice  particularly  that  "Newyork"  is  counted  as  one  word 
and  should  be  so  written  in  all  telegrams.  Numbers  also  should 
be  spelled  out;  each  digit  of  a  number  is  counted  as  one  word: 
"10,000,000"  would  be  counted  as  eight  words,  while  "ten 
million"  is  only  two  words.  Each  hyphenated  word  should  be 
written  as  one  word,  without  the  hyphen. 


euu  Of  uMiKi  mtitit     | 

mituii 

X 

UT  ima 

■iiirt  maua 

mar  unit 

sfilP 

WESTER  UNION 


MARCH   15,    1919 

S  L  DSAN 
ORAKD  HOTKL 
ALBAHY  H  T 

8ES  PETERSON  NETTORK  IiaffiDIATZLT  BOlffllRfi  EIGHT  TWEIITY  THREE 

TBIRIT  FIVE 


FIGURE  21:     This  is  how  the  telegram  on  page  65  is  prepared  for  sending  to  the 

telegraph  office.     You  will  notice  that  it  is  typed  entirely  in  capitals,  that  New  York 

is  written  as  one  word,  and  that  the  punctuation  is  omitted. 


For  Mr. 
Mr. 


MEMORANDUM  OF  TELEPHONE  CALL 
_Date 


.Time. 
.of_ 


left  this  message: 


His  number  is. 


Please  call  him  at. 


Signed. 


FIGURE  22:  A  memorandum  s'.ip  like  this  for  noting  down  telephone  messages 
helps  to  make  sure  that  all  the  desired  information  about  any  call  is  given.  Some 
offices  have  the  slips  printed  on  pink  paper.     Can  you  think  of  any  reason  for  this? 

66 


THE  TELEPHONE  AND  THE  TELEGRAPH     67 

How  one  manager  handles  telegrams.  One  office  man- 
ager makes  it  a  rule  that  all  telegrams  sent  out  from  his  office 
shall  be  typewritten  in  capital  letters  without  any  punctuation 
or  sentence  spacing;  his  reason  for  this  is  that  the  telegraph 
company  writes  all  telegrams  that  way  and  by  writing  his 
telegrams  the  same  way,  he  can  see  just  how  his  telegrams  are 
going  to  look  when  they  are  received  at  the  other  end.  "Often 
the  omission  of  a  period  or  comma  will  change  the  entire  mean- 
ing of  a  sentence,"  he  says,  "and  I'd  rather  find  it  out  before 
I  send  a  telegram  than  afterwards." 

Another  manager  uses  the  word  "stop"  when  he  finds  it 
absolutely  necessary  to  use  periods;  of  course  this  adds  one 
word  to  the  cost  of  the  telegram,  but  he  says  it  sometimes  pays. 

Cipher  and  code  words.  Improper  grouping  or  mu- 
tilation of  words  is  not  permitted,  although  groups  of  figures 
or  letters  which  are  not  dictionary  words  of  one  of  the  eight 
specified  languages  will  be  counted  at  the  rate  of  five  characters 
to  a  word. 

For  example,  "ALRIGHT"  would  be  counted  as  two  words 
because  they  are  improperly  combined,  while  "navy-yard," 
"cannot,"  or  "can't"  are  each  counted  as  one  word. 
"HAVYU"  would  not  be  permitted  or  would  be  counted  as 
two  words  because  it  is  purposely  mutilated  for  the  purpose 
of  gaining  a  word.  "Cipher"  or  "code"  words  may,  how- 
ever, be  used  for  regular  telegrams,  but  not  for  day  or  night 
letters,  which  will  be  discussed  later.  "ITISI"  would  be 
counted  as  three  words,  while  "SIITI"  could  be  used  as  one 
cipher  word  and  might  mean  "Your  order  was  shipped  today." 

Many  firms  issue  code  books  or  sheets  in  which  their  prod- 
ucts are  designated  by  code  words.  For  example,  an  automobile 
manufacturer  designates  a  "rear  axle  left  housing  nut  bolt 
No.  352"  by  the  code  word  "EEM"  while  "DECEIVABLY" 
means:  "Ship  immediately  by  express  prepaid."  The  private 
code  insures  secrecy,  since  only  those  having  copies  of  the  key 
can  read  the  message.  Among  the  universally  used  code  sys- 
tems are  ABC,  Lieber's,  and  the  Western  Union. 

How  to  make  your  message  clear.  It  may  be  well  to 
remember  that  it  is  not  economy  to  sacrifice  clearness  for  brevity. 


68  OFFICE  TRAINING  AND  STANDARDS 

If  your  message  isn't  clear,  add  enough  words  or  change  it  until 
it  is  clear.  Otherwise  you  may  be  simply  throwing  away  not 
only  the  cost  of  the  telegram,  but  also  the  cost  of  possibly  two 
more  telegrams — one  from  your  salesman  asking  for  more 
information,  and  your  answer  to  him. 

What  we  have  studied  thus  far  applies  practically  to  so- 
called  "regular  telegrams,"  or  ''fast  day  messages,"  as  the 
telegraph  companies  call  them.  There  are  three  other  kinds  of 
telegraphic  messages  which  may  be  used — the  "night  message," 
the  "day  letter,"  and  the  "night  letter."  Each  of  these  has 
its  uses  and  often  one  of  them  will  serve  the  purpose  just  as 
well  as  a  "regular  telegram." 

Night  messages  and  day  letters.  The  "night  message" 
is  the  same  as  a  regular  telegram,  except  that  it  is  sent  during 
the  night,  and  delivered  the  following  morning,  for  a  lower 
rate  for  ten  words  than  a  regular  telegram.  For  13-^2  times  the 
cost  of  a  regular  telegram  of  10  words  you  can  send  a  "day 
letter"  of  50  words  or  less. 

This  leeway  of  50  words  makes  it  possible  to  make  our 
message  longer  than  if  we  used  only  10  words;  on  the  other  hand, 
the  day  letter  is  not  as  fast  as  a  regular  telegram.  The  regular 
telegram  is  usually  transmitted  as  soon  as  received,  while  the 
telegraph  company  agrees  to  send  the  day  letter  "some  time 
during  the  day."  This  enables  the  telegraph  company  to  keep 
ts  wires  busy  during  what  might  otherwise  be  slack  periods. 

Ordinarily  a  day  letter  is  only  about  two  or  three  hours 
slower  than  a  regular  telegram.  If,  for  instance,  a  telegram 
was  sent  from  Chicago  to  Boston,  leaving  Chicago  at  9  a.  m., 
it  might  be  delivered  in  Boston  within  half  an  hour,  while  a 
day  letter  sent  at  the  same  time  might  not  reach  Boston  before 
11  or  12  o'clock,  and  if  the  wires  between  Chicago  and  Boston 
were  unusually  busy,  the  day  letter  might  not  get  through 
before  3  or  4  o'clock.  Delays  like  this  are,  however,  said  to 
be  rare,  except  in  severe  weather. 

Night  letters.  A  "night  letter"  of  50  words  or  less  may 
be  sent  for  the  same  cost  as  a  regular  telegram  of  10  words,  the 
telegraph  company  agreeing  to  deliver  the  message  before  12 
o'clock  the  following   noon.     Similar   considerations   apply   to 


THE  TELEPHONE  AND  THE  TELEGRAPH     69 

night  letters  as  to  day  letters.     The  messages  are  sent  "some 
time  during  the  night,"  when  the  wires  are  least  busy. 

Although  the  company  does  not  agree  to  deliver  a  night 
letter  before  12  noon  the  next  day,  usually  a  night  letter  from 
Chicago  to  Boston,  for  instance,  would  be  delivered  in  Boston 
about  7  or  8  in  the  morning,  or  on  the  first  mail  in  the  morning. 
Needless  to  say,  the  telegraph  companies  have  built  up  a  profit- 
able business  out  of  night  letters  and  day  letters,  at  the  same 
time  benefiting  their  patrons. 

Which  kind  of  message  to  use.  Just  which  kind  of  mes- 
sage to  use  depends  largely  on  the  urgency  of  the  message.  If 
your  message  required  an  immediate  reply,  of  course  you  would 
use  a  regular  telegram.  If  you  didn't  require  an  immediate 
reply  but  simply  wanted  an  answer  during  the  day,  a  day  letter 
might  serve;  and  if  you  didn't  need  an  answer  the  same  day, 
but  couldn't  wait  for  the  mails,  you  could  use  a  night  letter. 

From  many  postofhces  there  are  no  Sunday  deliveries  of 
mail.  If  you  were  planning  to  leave  town  Saturday  night  on 
an  extended  trip  and  found  Friday  that  you  had  to  have  certain 
information  from  your  Boston  office,  you  would  probably  send 
a  day  letter  to  your  Boston  office;  they  would  reply  with  a 
night  letter,  which  would  reach  you  Saturday  morning.  If 
you  had  written,  the  letter  could  not  have  reached  Boston  in 
time  to  get  any  kind  of  reply  back  to  you  before  you  left  town 
Saturday  night. 

If  you  didn't  reaUze  until  Saturday  morning  that  you  had 
to  have  the  special  information,  then  you  would  have  sent  a 
regular  telegram  and  probably  would  receive  either  a  day  letter 
or  a  regular  telegram  in  reply,  depending  upon  how  long  it 
took  to  look  up  the  information. 

Long  distance  messages.  While  the  telegraph  is  used 
for  continental  long-distance  communication,  when  we  wish  to 
wire  business  men  in  London  or  other  foreign  places  it  is  neces- 
sary to  use  cable  service  or  the  wireless,  which  has  been  developed 
very  rapidly.  The  rates  for  ''marconigrams,"  as  the  wireless 
messages  are  called,  are  a  little  less  than  for  cablegrams. 

Cables  and  cable  messages.  There  are  four  kinds  of  cable 
messages:   full  rate,  deferred  half  rate,  cable  letters,  and  week- 


70  OFFICE  TRAINING   AND  STANDARDS 

end  letters.  The  full  rate  cablegram  is  transmitted  without 
delay.  The  deferred  half  rate  cablegram  is  usually  transmitted 
in  order,  but  it  is  subject  to  being  deferred  in  favor  of  full  rate 
messages  for  not  over  24  hours. 

Cable  letters  perform  a  function  similar  to  that  of  day  and 
night  telegraphic  letters — the  sending  of  a  longer  message  at  a 
lower  rate,  subject  to  delivery  at  the  convenience  of  the  cable 
company  within  24  hours.  Week-end  cable  letters  are  similar 
to  cable  letters  except  that  the  rate  is  slightly  lower  and  the 
message  must  be  filed  before  midnight  Saturday  for  delivery 
Monday  morning. 

In  the  lesson  on  directories  we  learned  how  to  write  cable- 
grams in  code.  As  with  telegrams,  only  regular  full  rate  cable- 
grams may  be  written  in  code. 

Cable  and  wireless  addresses.  In  this  country  there  is  no 
charge  for  the  address,  date,  and  signature  in  telegrams  unless 
extra  words  are  included;  but  in  cablegrams  and  marconigrams 
it  is  customary  to  charge  for  every  word,  so  the  messages  are 
further  abbreviated  by  the  use  of  cable  addresses. 

For  example,  if  a  cable  is  sent  to  the  Commonwealth  Edison 
Electric  Light  and  Power  Company  of  New  York,  the  full 
address  would  be  counted  as  eight  words.  The  company  might 
adopt  a  cable  address  such  as  "CEDELCO"  which  is  made 
up  from  parts  of  the  company  name.  If  no  other  firm  had 
adopted  this  name  it  could  be  registered  and  accepted  as  the 
address  of  that  particular  company.  Cables  addi-essed  to 
"CEDELCO,  NEWYORK"  could  be  delivered  easily  and 
would  be  counted  as  two  words  instead  of  eight. 

Sometimes  two  firms  doing  a  large  amount  of  cable  business 
with  each  other  will  adopt  a  "reversible  cable  address,"  so  that 
each  firm  will  address  the  other  by  that  word  and  they  will 
know  by  whom  the  message  was  sent  as  soon  as  they  receive  it. 
It  is  not  necessary  in  that  case  for  either  to  sign  their  message. 
You  can  easily  see  that  this  would  mean  a  considerable  saving 
in  the  course  of  a  few  years. 

Transferring  money  on  short  notice.  One  really  impor- 
tant service  performed  by  the  telegraph  and  cable  companies 
remains  to  be  considered — the  transfer  of  money  by  telegraph 


THE  TELEPHONE  AND  THE  TELEGRAPH     71 

or  cable.  Occasions  often  arise  when  it  is  necessary  to  pay 
money  at  some  distant  point  upon  very  short  notice,  so  short 
that  it  would  be  obviously  impossible  for  either  the  mail  or  the 
express  to  reach  that  point  in  time.  Resource  must  therefore 
be  had  to  the  ''wire"  companies,  who  will  arrange  for  the  imme- 
diate transfer  of  funds  from  any  part  of  the  world  to  any  other 
part  at  a  relatively  low  cost. 

The  rates  vary  according  to  the  distance,  since  the  regular 
rate  for  a  15- word  message  is  added  to  the  transfer  rate,  which 
runs  from  25  cents  for  $25  to  85  cents  for  $100,  with  a  rate 
of  25  cents  for  each  additional  $100  up  to  $3,000,  and  20  cents 
for  each  additional  $100  above  $3,000. 

This  gives  an  opportunity  for  paying  premiums,  taxes,  fines, 
assessments,  or  mortgages  before  a  fixed  time  limit  expires. 
A  deposit  is  often  required  to  guarantee  a  purchase,  sale,  con- 
tract, or  advertisement.  Travelers  and  salesmen  require  extra 
funds  on  short  notice,  and  there  are  many  other  ways  in  which 
business  is  facihtated  and  the  public  acconmiodated  by  these 
telegraphic  transfers  of  money. 

Differences  in  time  when  telegraphing.  When  transfer- 
ring money  at  a  specified  time,  or  when  important  business 
transactions  must  be  accepted  or  closed  before  some  fixed  date, 
it  is  necessary  to  know  the  difference  in  time  between  the  two 
places,  especially  if  they  are  far  apart.  Since  the  earth  rotates 
on  its  axis  once  in  24  hours  and  there  are  360°  in  a  circle,  the 
sun  seems  to  travel  15°  in  each  hour  of  time,  which  makes  a 
difference  of  one  hour  with  each  15°  of  longitude.  If  a  message 
is  started  at  3  p.  m.  in  San  Francisco  it  would  reach  New  York 
instantly,  but  the  offices  there  would  all  be  closed  for  the  day, 
because  the  time  in  New  York  is  three  hours  ahead  of  San 
Francisco  time.  If  a  cablegram  leaves  New  York  for  London 
at  3  p.  m.  it  would  be  8  p.  m.  when  it  arrived  in  London,  which 
is  about  75°  east  of  New  York. 

If  you  should  start  a  wireless  message  from  a  steamer  in 
the  Pacific  ocean  just  east  of  the  international  date  line  at 
noon  on  July  1,  it  would  reach  San  Francisco  about  4  o'clock 
in  the  afternoon;  New  York  at  7  o'clock;  London  at  midnight; 
Constantinople  at  2  o'clock  the  next  morning;    Manila  at  8 


72  OFFICE  TRAINING   AND  STANDARDS 

o'clock  the  next  morning,  and  it  would  reach  a  steamer  just 
west  of  the  date  line  at  noon  of  July  2.  If  your  steamer  now 
crosses  the  date  Hne  going  west  you  will  gain  a  day  in  a  second. 
Therefore,  if  you  wish  to  send  money  by  cable  from  San 
Francisco  and  have  it  in  Manila  on  July  2,  you  must  send  it 
on  July  1,  or  it  will  arrive  a  day  too  late. 

You  can  easily  calculate  the  difference  in  time  between 
two  cities  by  finding  the  difference  in  degrees  and  dividing  that 
by  the  number  of  degrees  in  an  hour  of  time,  or  you  can  obtain 
from  the  telegraph  or  cable  company  a  table  showing  the  differ- 
ence in  time  between  the  important  cities  of  the  world. 

TELEPHONE  STANDARDS 

How  to  use  the  telephone 

1.  Before  calling  for  a  number  consult  the  directory.    There  are  over 
500,000  numbers  in  some  directories.    Don't  try  to  remember  all  of  them. 

2.  You  can  save  time  in  looking  up  numbers  if  you  make  a  list  of  the 
numbers  you  call  most  frequently  and  keep  it  near  the  telephone. 

3.  Speak  into  the  transmitter,  not  at  it  or  at  the  ceiling. 

4.  Keep  your  voice  below  your  ordinary  pitch  rather  than  above  it. 

5.  If  you  can't  be  understood,  try  to  speak  more  slowly  and  distinctly. 

6.  Listen  when  the  operator  repeats  the  number  after  you  and  see  that 
she  gives  it  correctly. 

7.  Do  not  say  Central  2978  if  you  mean  2987. 

8.  Say  two-nine,  eight-seven — not  twenty-nine  eighty-seven,   or  two 
thousand  nine  hundred  eighty  seven. 

9.  Say  four,  four-four — not  four  double  four  or  four  forty-four. 
10.    Say  two-one,  one-0 — not  two  one  ten. 

IL    Say  three  hundred— not  three  double  O  or  three  0  0. 

12.  Say  five  thousand — not  fifty  double  O  or  five  0  0  0. 

13.  Say  three,  five  hundred— not  thirty-five  double  0  or  thirty-five 
hundred. 

14.  Don't  hang  up  the  receiver  when  you  get  the  wrong  number. 

15.  Move  the  receiver  hook  slowly  up  and  down  to  attract  the  operator's 
attention  and  then  give  her  the  right  number. 

16.  If  you  wish  to  make  an  emergency  call  and  don't  know  the  number, 
simply  say  you  want  to  report  a  fire  or  you  want  to  get  a  policeman. 

17.  No  charge  is  made  for  emergency  calls. 

18.  In  answering  the  telephone,  do  not  say  "Hello."  It  is  a  waste  of  your 
time,  and  the  time  of  the  person  calling  you. 

19.  Introduce  yourself  by  giving  your  number,  or  your  firm  name  and 
then  your  name. 

20.  Don't  give  any  information  until  you  know  to  whom  you  are  talking. 


THE  TELEPHONE  AND  THE  TELEGRAPH     73 

2L  Don't  trust  your  memory  in  receiving  messages  but  always  have  a 
pencil  and  pad  at  hand  for  taking  notes, 

22.  When  there  is  a  call  for  a  member  of  the  office  force  who  is  absent, 
secure  the  name  and  number  of  the  person  calling  and  also  the  message  if  pos- 
sible.    It  is  a  good  idea  also  to  note  the  hour  the  call  was  received. 

23.  If  possible  without  being  discourteous,  find  out  what  is  wanted  before 
connecting  a  call  with  the  manager.  Perhaps  you  can  answer  the  question  and 
save  the  manager's  time. 

24.  Don't  get  angry.  It  is  unbusinesslike.  Besides  you  may  be  the  one 
who  is  to  blame. 

25.  A  well-modulated,  pleasing  voice,  tact,  and  good  judgment  will  help 
to  win  friends  for  your  employer  and  promotion  for  yourself 

26.  Don't  do  your  visiting  over  the  telephone  during  office  hours. 

TELEGRAPH  STANDARDS 

Writing,  sending,  filing,  and  receiving  telegrams 

1.  The  telegraph  is  less  expensive  than  the  telephone  for  long  distance 
communication. 

2.  The  cost  of  a  telegram  depends  on  the  number  of  words  in  the  message. 

3.  Each  figure  and  punctuation  mark  is  counted  as  one  word. 

4.  Spell  out  all  numbers;  it  usually  costs  less. 

5.  Quotation  marks  and  parenthesis  are  counted  as  one  word. 

6.  Omit  the  complimentary  close  and  the  saluation  in  telegraph  and 
cable  messages. 

7.  Omit  words  that  do  not  help  make  the  message  clear. 

8.  Abbreviations  in  common  use,  such  as  c.  o.  d.,  f.  o.  b.,  o.  k.,  %,  a.  m., 
and  p.  m.  are  each  counted  as  one  word  and  should  be  so  written:  cod,  fob,  ok, 
%,  am,  pm. 

9.  Make  your  telegram  brief,  but  never  sacrifice  clearness  to  brevity. 
10.     If  desired,  messages  may  be  "repeated  back"  for  one-half  of  the 

rate  for  telegrams,  or  one-fourth  of  the  full  rate  for  cablegrams. 

n.  Repeating  the  message  helps  to  insure  correct  transmission,  but  no 
guarantee  of  accuracy  is  given  by  the  telegraph  or  cable  company. 

12.  It  may  take  from  two  to  four  hours  to  get  a  reply  to  a  message  if 
there  is  a  large  amount  of  business  ahead  of  j^our  message. 

13.  Government  messages  have  priority  in  their  transmission  over  all 
other  messages. 

14.  A  special  government  rate  is  made  on  the  transmission  of  all  weather 
bureau  reports. 

15.  The  use  of  ciphers  and  codes  reduces  expense  and  assures  secrecy. 

16.  The  use  of  a  code  is  permissible  in  day  and  night  telegrams  and  in 
cablegrams  but  not  in  day  and  night  letters,  deferred  cablegrams,  cable  letters, 
and  week-end  cable  letters. 

17.  A  day  letter  containing  50  words  costs  only  IH  t  °aes  as  much  as  a 
telegram,  but  it  is  not  so  fast. 


74  OFFICE  TRAINING  AND  STANDARDS 

18.  A  night  letter  of  50  words  costs  the  same  as  a  telegram  of  10  words. 

19.  Never  send  a  regular  telegram  when  a  day  letter  will  serve  your 
purpose. 

20.  Never  send  a  day  letter  when  a  night  letter  will  do  as  well. 

21.  Never  send  a  night  letter  when  the  mails  are  fast  enough. 

22.  If  your  business  is  u  gent  enough  to  require  a  regular  telegram,  it  is 
not  economy  to  send  a  day  or  night  letter. 

23.  Messages  should  be  typewritten  in  triplicate  on  blank  forms  furnished 
by  the  telegraph  company. 

24.  The  original  copy  is  furnished  to  the  telegraph  company  for  trans- 
mission. 

25.  One  copy  may  be  enclosed  in  a  letter  confirming  the  telegram. 

26.  The  third  copy  is  to  be  filed  in  your  ofhce  as  a  record  of  the  message, 
and  also  to  check  the  telegraph  company's  bills. 

27.  In  cablegrams  each  word  in  the  address,  date,  and  signature  is  charged 
for. 

28.  Marconigrams  may  be  used  in  transoceanic  communication. 

29.  Marconigrams  cost  a  little  less  than  cablegrams. 

30.  Deferred  half  rate  messages,  cable  letters,  and  week-end  letters  are 
cheaper  than  regular  cablegrams  but  not  as  prompt. 

31.  You  are  wasting  money  if  you  send  a  regular  cablegram  when  a  cable 
letter  will  do  as  well. 

32  Radio  messages  may  be  sent  to  nearly  all  ocean  and  lake  steamers, 
making  it  possible  to  keep  in  touch  with  them  at  all  times. 

33.  Marine  service  messages  report  the  sighting  and  arrival  of  steamers 
from  foreign  ports. 

34.  Wireless  messages  and  cablegrams  must  be  paid  for  in  advance. 
Telegrams  may  be  sent  collect,  but  the  payment  must  be  guaranteed  by  the 
person  who  is  sending  the  message. 

35.  Messages  must  be  written  in  one  of  the  following  languages,  using 
Roman  characters:  Latin,  Italian,  German,  Dutch,  Spanish,  Portuguese, 
French,  Eng'ish. 

30.  Telegraph  companies  are  required  by  law  to  send  messages  exactly 
as  wTitten. 

37.  If  you  want  to  get  money  quickly  from  one  place  to  another  you  can 
telegraph  it. 

38.  The  large  express  companies  will  transfer  money  by  telegraph  at  all 
points  where  they  have  offices. 

39.  The  telegraph  companies  add  the  cost  of  a  15-word  message  to  the 
transfer  rate,  while  the  express  companies  charge  only  for  a  regular  code  message. 
Remember  this  when  you  want  to  telegraph  money. 

40.  Remember  when  telegraphing  or  cabling  that  New  York  time  is  three 
hours  ahead  of  San  Francisco  time  and  London  time  five  hours  ahead  of  New 
York  time. 

41.  You  can  obtain  from  a  telegraph  or  cable  company  a  table  showing 
the  difference  in  time  between  the  important  cities  of  the  world. 


THE  TELEPHONE  AND  THE  TELEGRAPH  75 

STANDARD  QUESTIONS 

The  use  of  the  telephone 

1.  Is  the  telephone  a  luxury  or  a  necessity? 

2.  About  how  long  has  it  been  in  common  use? 

3.  By  whom  was  the  telephone  invented? 

4.  Why  has  its  adoption  increased  so  rapidly? 

5.  What  is  the  chief  value  of  a  telephone? 

6.  What  is  the  longest  telephone  line  in  the  world? 

7.  Under  what  conditions  has  the  telephone  supplanted  the  telegraph? 

8.  Under  what  conditions  is  it  better  to  use  the  telegraph? 

9.  Under  what  conditions  would  it  be  advisable  to  telephone  a  long 
distance? 

10.  What  business  would  be  most  inconvenienced  by  discontinuing  the 
telephone? 

11.  How  is  time  sometimes  wasted  by  using  the  telephone? 

12.  Under  what  conditions  would  the  telautograph  be  more  suitable  for 
interhouse  communications? 

13.  Under  what  conditions  would  the  dictograph  be  more  satisfactory 
than  the  telephone? 

14.  How  many  parties  are  involved  in  making  a  telephone  call? 

15.  What  are  the  most  essential  points  to  be  observed? 

16.  Why  do  mistakes  frequently  occur? 

17.  What  is  the  commonest  cause  of  mistakes? 

18.  How  far  should  the  lips  be  held  from  the  mouthpiece? 

19.  Is  it  necessary  to  raise  the  voice  above  the  ordinary  tone? 

20.  What  effect  does  rapid  talking  have  on  the  conversation? 

21.  How  do  harsh  and  abrupt  tones  affect  customers? 

22.  WTiat  are  the  effects  of  delays  in  answering  calls? 

23.  What  is  the  best  method  of  introducing  yourself? 

24.  Why  should  you  get  the  name  of  the  caller? 

25.  Is  it  necessary  to  say  "Good-bye"? 

26.  WTiat  is  the  best  method  of  calling  numbers? 

27.  Why  is  it  important  to  be  brief  but  not  blunt? 

28.  Why  is  it  necessary  to  be  courteous? 

29.  What  is  meant  by:    "The  voice  with  the  smile  wins"? 

30.  How  can  you  recall  the  operator? 

31.  What  should  you  do  when  you  get  the  wrong  number? 

32.  What  are  the  advantages  of  a  party  line? 

33.  What  are  the  advantages  of  an  extension  telephone? 

34.  What  are  the  advantages  of  a  private  exchange? 

35.  What  are  the  advantages  of  a  branch  exchange  switchboard? 

36.  What  are  the  advantages  of  a  monitor  switchboard? 

37.  What  are  emergency  calls? 

38.  How  would  you  telephone  in  case  of  fire? 

39.  How  would  you  call  the  police? 

40.  Why  do  telephone  companies  have  schools  for  their  employees? 


76  OFFICE  TRAINING   AND  STANDARDS 

41.  Do  you  generally  get  good  service  from  a  telephone  company?    If 
so,  why?    If  not,  why  not? 

42.  Do  you  generally  get  as  quick  service  in  a  store  as  you  do  from  a 
telephone  company? 

43.  Whose  fault  is  it  generally  when  you  get  the  wrong  number? 

44.  WTiat  is  meant  by  "long  distance?" 

45.  What  is  meant  by  "information"? 

46.  What  is  meant  by  "traffic  manager"? 

47.  How  could  you  tell  whether  the  place  to  be  telephoned  is  long  dis- 
tance or  surburban? 

48.  What  would  you  do  if  the  telephone  should  get  out  of  order? 

49.  What  would  you  do  if  the  person  wanted  at  the  telephone  was  absent? 
Give  your  reasons. 

50.  What  are  the  advantages  of  a  classified  telephone  directory? 

STANDARD  QUESTIONS 

Telegraph  and  cable  messages 

1.  Can  you  mention  some  of  the  ways  in  which  the  electric  telegraph  has 
benefited  business? 

2.  What  is  the  advantage  of  a  day  letter  over  a  night  letter?  A  night 
letter  over  a  regular  letter?  A  telegram  over  a  telephone  message?  A  day 
message  over  a  night  message? 

3.  What  is  the  difference  between  a  telegram  and  a  cablegram?  A 
cablegram  and  a  marconigram?  A  night  message  and  a  night  letter?  A  day 
message  and  a  day  letter?  A  regular  and  a  deferred  cablegram?  A  cable 
letter  and  a  week-end  cable  letter? 

4.  Under  what  conditions  would  you  use  the  telephone  in  preference  to 
the  telegram?  The  night  letter  instead  of  the  night  message?  The  cable 
letter  instead  of  the  cablegram? 

5.  What  business  conditions  have  increased  the  use  of  telegrams?  Of 
cablegrams?    Of  marconigrams? 

6.  What  business  finds  it  a  special  advantage  to  use  the  week-end  cable 
letter?    The  wireless  message? 

7.  ^Vhat  advantages  are  there  in  using  a  registered  cable  address? 

8.  Why  is  legibility  an  important  factor  in  writing  messages? 

9.  Are  the  telegraph  companies  allowed  to  alter  obvious  mistakes  in 
sending  a  message? 

10.  If  a  cablegram  is  sent  in  French,  will  it  be  delivered  in  English? 

11.  What  is  meant  by  repeating  a  message?    By  decoding  a  message?    By 
confirming  a  message? 

12.  How  many  copies  of  a  message  usually  are  made?    Wliy? 

13.  Will  the  telegraph  company  guarantee  repeated  messages? 

14.  How  long  does  it  take  to  send  a  cablegram  from  New  York  to  London? 

15.  How  long  does  it  usually  take  to  get  a  reply?    What  causes  the  delay? 

16.  Why  is  the  time  when  a  message  is  delivered  of  great  importance? 


THE  TELEPHONE  AND  THE  TELEGRAPH     77 

17.  Why  is  the  difference  in  time  between  two  places  important? 

18.  How  can  a  message  be  received  at  an  earlier  hour  than  it  was  sent? 

19.  How  can  a  broker  buy  stock  three  hours  before  the  market  opens? 

20.  How  do  express  companies  transfer  money  by  telegraph? 

21.  How  is  time  an  important  element  in  sending  money  by  telegraph? 

22.  ^\^ly  is  it  important  to  use  care  in  wording  a  message? 

23.  Are  punctuation  marks  included  in  the  message? 

24.  When  are  charges  made  for  extra  words  in  the  date  or  address? 

25.  When  are  charges  made  for  all  of  the  address  and  signature? 

26.  WHiy  do  we  omit  the  salutation  and  complimentary  closing  in  messages? 

27.  What  is  the  best  way  to  wTite  figures  in  a  telegram  or  cablegram? 

28.  Can  an  American  operator  send  a  cablegram  in  Spanish  if  he  cannot 
read  Spanish?    In  Greek?    In  Latin?    If  so,  how?    If  not,  why  not? 

29.  In  how  many  different  languages  can  cablegrams  be  sent? 

30.  Must  a  message  be  signed  in  order  to  be  accepted? 

31.  Will  a  message  be  accepted  if  it  contains  profane  language? 

32.  Can  the  person  who  writes  the  message  change  the  date  or  name  of 
the  place  where  it  is  filed? 

33.  Can  anyone  find  out  the  nature  of  the  message  you  sent  by  asking  the 
telegraph  com.pany? 

34.  How  can  you  guarantee  the  delivery  of  a  message  in  a  remote  place 
where  there  is  no  telephone? 

35.  Under  what  conditions  is  it  advisable  to  transfer  money  by  telegraph 
through  an  express  company? 

36.  Why  are  government  m.essages  given  precedence  over  all  others? 

37.  How  are  telegraphic  messages  a  protection  to  the  farmer,  the  fruit 
grower,  the  shipper,  the  lake  and  ocean  vessels? 

38.  How  is  it  possible  to  read  in  the  New  York  morning  paper  about  a  big 
business  deal  that  took  place  in  London  at  9  a.  m.  the  same  day? 

39.  Can  a  man  withdraw  by  telegraph  an  offer  which  he  sent  by  mail  if 
he  sends  the  message  before  the  letter  is  received? 

40.  Why  can  telegraph  companies  afford  to  transmit  deferred  messages 
at  such  a  low  price? 

41.  Why  do  some  firms  prefer  to  deliver  their  own  messages  to  the  com- 
pany instead  of  turning  them  over  to  a  messenger  boy? 

42.  For  practice  invent  a  code  and  write  some  messages.  Each  message 
should  be  "decoded"  or  translated  by  writing  the  meaning  in  different  colored 
ink  or  type  underneath  the  code  words. 

STANDARD  EXERCISES 

Differences  in  time 

1.  How  many  degrees  of  longitude  around  the  earth? 

2.  How  many  hours  does  it  take  the  earth  to  rotate  on  its  axis? 

3.  How  many  degrees  in  an  hour  of  time? 

4.  How  many  degrees  in  a  minute  of  time? 


78  OFFICE  TRAINING  AND  STANDARDS 

5.  The  difference  in  time  between  Philadelphia  and  St.  Louis  is  one 
hour.    If  St.  Louis  is  90°  west  longitude  what  is  the  longitude  of  Philadelphia? 

6.  The  difference  in  longitude  between  Washington  and  San  Francisco  is 
45°.  When  it  is  9  o'clock  in  the  morning  at  Washington  what  is  the  time  at 
San  Francisco? 

7.  When  it  is  noon  at  Washington  what  is  the  time  at  Montreal? 

8.  When  it  is  noon  at  Washington  what  is  the  time  at  London,  England? 

9.  When  it  is  noon  at  Washington  what  is  the  time  at  Denver,  Colorado? 

10.  When  it  is  noon  in  St.  Louis  what  is  the  time  at  Seattle,  120°  west? 

11.  When  it  is  noon  in  St.  Louis  what  is  the  time  at  Rome,  Italy,  15°  east? 

12.  WTien  it  is  noon  in  St.  Louis  what  is  the  time  at  Manila,  120°  east? 

13.  Two  traveling  men  met  in  Minneapolis.  One  found  his  watch  two 
hours  slow  and  the  other  two  hours  fast.  Where  might  they  have  started,  if 
their  watches  had  not  been  changed  since  they  left  home? 

14.  A  train  left  Chicago  at  6  o'clock,  p.  m.,  and  arrived  in  Denver  at  5 
o'clock  the  next  evening,  Denver  time.     How  long  did  the  trip  take? 

15.  A  train  leaves  St.  Louis  at  6  p.  m.,  and  arrives  in  New  York  at  7  p.  m., 
the  next  day,  New  York  time?    How  long  does  it  take  to  make  the  trip? 

16.  How  can  you  send  a  telegram  on  Tuesday  and  have  it  received  on 
Monday? 

17.  If  a  New  York  office  closes  at  3  o'clock,  p.  m.,  when  must  a  telegram 
be  sent  from  San  Francisco  to  arrive  before  closing  hours? 

18.  A  London  office  closes  at  2  p.  m.  "WTien  would  it  be  necessary  for  a 
Chicago  man  to  send  a  cablegram  that  would  be  delivered  before  closing? 

19.  A  cablegram  sent  from  New  York  at  9  a.  m.,  was  delivered  in  Paris 
at  2 :30  p.  m.    How  long  did  it  take  to  transmit  and  deliver  the  message? 

20.  A  business  deal  in  Manila  requires  a  certain  amount  of  money  to  be 
there  July  1.  When  must  the  money  be  sent  by  cable  from  Chicago  to  be 
available  on  time? 

21.  A  San  Francisco  man  decides  at  3  o'clock  in  the  afternoon  to  send  a 
telegram  of  25  words  to  a  firm  in  New  York.  What  would  be  the  best  kind  of 
message  to  send  and  how  much  would  it  cost? 

22.  How  much  would  it  cost  to  transfer  $200  by  telegram  from  New  York 
to  San  Francisco  and  when  would  it  reach  San  Francisco  if  started  at  3  p.  m.? 

23.  How  much  would  it  cost  to  send  a  week-end  letter  of  30  words  from 
London  to  New  York  and  how  much  time  would  be  gained  by  a  branch  house 
making  such  a  week-end  report? 

24.  How  much  will  it  cost  to  send  a  code  cablegram  of  10  words  to  London 
from  San  Francisco  via  New  York  if  the  message  must  reach  London  not  later 
that  5  p.  m.,  July  4?  If  the  clocks  are  moved  ahead  one  hour  in  England  be- 
tween May  21  and  October  1,  when  must  the  message  leave  San  Francisco? 

25.  If  the  rate  of  a  cable  letter  from  Chicago  to  Liverpool  is  75  cents 
for  the  first  12  words  and  5  cents  for  each  additional  word,  how  much  will  a 
37-word  message  cost?    How  much  time  will  be  gaiued  over  a  regular  letter? 


CHAPTER  VI 

WHAT  THE  FILES  ARE  FOR 

THE  files  form  a  vital  part  in  the  records  of  every  office. 
In  fact,  the  success  or  failure  of  a  transaction  or  even  a 
business  may  sometimes  depend  upon  how  available  the 
information  in  the  file  is.  The  object  of  fihng  letters  and  papers 
is  not  simply  to  dispose  of  them — the  waste  basket  could  serve 
that  purpose;  the  object  of  filing  is  to  make  it  easy  to  find 
the  papers  or  letters  when  they  are  wanted,  and  to  find  them 
quickly  without  any  delay  whatever. 

The  essentials  of  good  filing.  When  we  speak  of  files,  our 
first  thought  is  of  letters.  In  one  way,  however,  all  of  the  records 
of  an  office  are  files,  and  just  as  much  care  must  be  taken  with 
records  of  all  kinds  as  with  letters.  The  average  business  man 
is  not  expected  to  remember  the  prices  quoted,  the  contracts 
accepted,  or  the  letters  written,  if  he  can  depend  upon  the 
office  files  and  records  to  furnish  him  instantly  the  infor- 
mation that  he  desires. 

These  records  may  consist  of  correspondence,  miscellaneous 
information,  or  financial  data.  They  may  be  needed  to  settle 
a  dispute,  confirm  an  opinion,  establish  a  standard,  make  com- 
parisons, or  facilitate  business  in  numerous  other  ways.  A 
good  filing  method  therefore  is  one  that  is  adapted  to  the  busi- 
ness, can  be  depended  upon  for  accuracy,  and  will  produce 
at  once  the  information  wanted. 

The  value  of  capable  assistants.  Two  factors  go  far  to 
determine  the  degree  of  success  which  any  method  of  filing  or 
record-keeping  attains.  The  first  factor  is  of  course  the  method 
itself,  and  the  second  is  the  character  of  those  who  are  to  operate 
it.  A  filing  plan  which  will  run  itself  has  not  and  never  will 
be  devised;    it  is  impossible.    But  intelligent  office  assistants 

79 


80  OFFICE  TRAINING   AND  STANDARDS 

go  far  toward  making  any  plan  effective.  A  capable  filing 
clerk  can  usually  operate  a  poor  system;  but  a  careless  clerk 
will  make  a  failure  of  the  finest  system  ever  installed.  Hence 
it  is  evident  that  the  greatest  efficacy  is  reached  when  both 
method  and  operators  are  harmoniously  adjusted  to  the  partic- 
ular needs  of  the  office. 

Since  the  basis  for  all  record-keeping  and  filing  is  the  method 
by  which  the  records,  papers,  letters,  and  data  are  arranged, 
let  us  first  take  up  the  principles  which  underhe  any  successful 
filing  plan.  With  this  background  we  can  then  go  ahead  and 
discuss  ways  of  adapting  plans  to  the  requirements  of  different 
offices,  and  the  characteristics  that  are  necessary  to  make  filing 
assistants  capable. 

Filing  equipment.  First  let's  consider  the  equipment  used 
in  filing.  The  earliest  fiUng  devices  which  we  know  anything 
about  were  the  pointed  stick,  bent  wire,  or  steel  spindle.  These 
were  followed  by  the  box  file  shown  on  page  84,  which  con- 
tained an  index  of  the  letters  of  the  alphabet  on  manila  sheets 
fastened  to  one  side  of  the  box.  The  papers  to  be  filed  were 
placed  between  these  sheets  in  alphabetical  order.  This  simple 
method  is  still  often  used  where  the  correspondence  would  not 
fill  over  two  or  three  boxes  a  year.  Its  chief  attraction  perhaps 
is  its  cheapness. 

Flat  files.  The  box  file  was  followed  by  the  flat  file  or 
loose  sheet  drawer,  which  was  modeled  on  almost  the  same 
principle  as  the  box  file,  except  that  a  drawer  was  used,  the 
papers  filed  flat,  and  the  divisions  were  further  subdivided, 
allowing  for  an  increase  in  the  quantity  of  correspondence  and 
other  papers  to  be  filed. 

Next  came  the  Shannon  file,  which  is  probably  the  most 
practical  type  of  flat  filing.  This  is  used  where  papers  such  as 
unfilled  orders  must  be  referred  to  frequently  and  are  in  danger 
of  being  lost.  These  files  are  fastened  to  a  thin  board  ready 
to  hang  near  the  desk,  or  they  are  made  in  drawers  to  fit  a 
cabinet.  The  steel  arch  on  which  the  papers  are  filed  alpha- 
betically holds  them  in  place  and  prevents  the  loss  of  important 
papers.  The  Shannon  file  is  illustrated  on  page  84.  It  is  used 
by  many  construction  companies  for  fifing  reports. 


THE  FILES  81 

Vertical  files.  The  latest  improvement  is  the  vertical  file, 
which  affords  an  effective  method  for  filing  correspondence  and 
for  preserving  all  forms  of  ofTice  records.  The  equipment  of 
any  vertical  fihng  system  consists  of: 

1.  Standard  or  special  sized  drawers  made  of  wood  or  metal,  with  "fol- 
lower blocks"  to  hold  the  guides  and  folders  in  an  upright  position. 

2.  Manila  or  pressboard  guides,  in  sizes  to  fit  the  drawers,  with  projecting 
tabs  at  the  upper  edges  of  the  guides;  these  tabs  bear  the  index  letters  or  num- 
bers or  other  designation. 

3.  Manila  folders  placed  one  or  more  in  back  of  each  guide;  the  letters 
and  papers  to  be  filed  are  placed  in  these  folders. 

A  vertical  file  is  shown  on  page  84. 

Card-index  equipment.  The  equipment  of  a  card  index 
consists  of: 

1.  A  cabinet  with  as  many  drawers  as  required. 

2.  Guides,  the  same  size  as  the  cards,  indexed  or  blank,  colored  or  white, 
according  to  the  method  used. 

3.  Record  cards,  with  printing,  ruling,  color,  and  size  to  suit. 

The  drawers  usually  have  stops  on  the  back,  which  help  to 
prevent  them  from  being  pulled  out  carelessly  and  dropped. 
The  stops  may  be  so  arranged  that  they  can  be  removed  by 
tilting  the  front  slightly.  Card-index  drawers  should  not  be 
furnished  with  suspension  slides.  Experience  has  shown  that 
rods  for  holding  the  cards  in  place  are  not  needed  except  when 
the  equipment  is  to  be  handled  by  the  general  pubhc,  or  in 
card  ledgers  where  the  responsibility  of  keeping  the  records  in 
their  proper  place  depends  on  one  person. 

We  shall  see  how  the  card  index  is  used  in  connection  with 
the  numerical  system  of  correspondence  filing,  the  "follow  up," 
and  the  ''tickler."  The  card  index,  which  is  a  method  for 
keeping  compiled  information  filed  on  a  card  where  it  can  be 
found  instantly,  permits  an  extension  of  these  principles  to  the 
filing  of  other  office  records  and  business  papers.  It  is  well 
adapted  to  the  preserving  of  such  office  records  as  subscription 
Usts,  salesmen's  and  prospect  cards,  quotations  given  or  received, 
catalog  indexes,  stock  records,  instalment  collections,  and 
factory  costs,  as  well  as  other  records  which  will  be  described 
later  in  connection  with  the  handUng  of  departmental  records, 
data,  and  correspondence. 


82  OFFICE  TRAINING   AND  STANDARDS 

How  to  make  filing  easy.  If  we  keep  in  mind  that  filing 
is  simply  arranging  letters  or  papers  so  that  they  can  be  found 
quickly,  we  shall  find  the  study  and  preparation  of  filing  sys- 
tems to  be  comparatively  simple. 

Suppose  we  take  a  letter  from  Robert  Bowen.  This  letter 
has  been  answered,  and  with  the  copy  of  the  answer  attached 
to  it,  is  ready  to  be  filed.    Where  shall  we  file  it? 

The  very  first  question  we  ask  ourselves  is:  ''When  we  want 
to  find  this  letter  again,  what  would  we  naturally  look  for  first?" 
Why,  "Robert  Bowen,"  of  course.  So,  if  we  file  the  letter 
under  Robert  Bowen  we  will  feel  pretty  sure  of  finding  it  again. 
This  kind  of  file  is  called  a  name  file.  That  is,  all  the  letters 
are  put  away  under  the  names  of  the  writers  of  those  letters. 

But  suppose  we  have  20  or  30  letters  from  as  many  different 
people,  or  suppose  we  have  100  different  letters  from  100  dif- 
ferent people.  We  would  of  course  file  the  letters  by  name, 
and  look  for  them  by  name.  But  if  our  names  were  not  arranged 
in  some  order,  wouldn't  it  take  us  rather  a  long  time  to  find 
Robert  Bowen' s  letter,  if  we  had  to  go  through  all  the  other 
letters  before  we  came  to  it? 

The  alphabetical  method  of  filing.  Evidently  we  must 
arrange  those  names  in  some  order  that  will  make  it  easy  to 
locate  any  desired  name  quickly.  The  first  thing  we  think  of 
is  to  arrange  the  names  alphabetically — that  is,  place  all  names 
beginning  with  A  under  "A,"  all  beginning  with  B  under  "B," 
and  so  on.  Now  if  we  want  to  find  Robert  Bowen's  letter  we 
simply  look  under  ''B"  first,  and  if  we  were  careful  in  fiUng 
the  letter,  we  will  find  it  quickly.  This  method  of  fifing  by 
letter  is  called  the  alphabetical  method. 

The  most  generally  employed  and  the  best  understood 
method  of  indexing  files  consists  of  a  set  of  26  guides  and  folders 
arranged  alphabetically,  one  for  each  letter  of  the  alphabet. 
Or,  if  the  correspondence  is  small,  one  vertical  file  drawer  and 
20  guides  and  folders  usually  are  sufficient.  As  the  corre- 
spondence increases,  40,  75  or  many  more  guides  may  be  arranged 
in  one  index. 

Another  method  of  filing  is  by  states,  called  tlie  geographical 
method.     In  preparing  geographical  guides  with  indexing  it  is 


FIGURE  23 :     Filing  is  really  quite  simple  if  you  use  a  little  care.     With  a  diagram 

like  this,  the  four  different  methods  of  filling  are  clearly  explained.     Take  each 

word  that  is  encircled  and  follow  the  line  leading  from  it.     Of  course,  not  many 

letters  would  need  to  be  so  thoroughly  cross-indexed  as  this  one. 

83 


I 

FIGURE  24:     The  box  file  was  one  of  FIGURE  25:     The  Shannon  file  holds 

the  first  filing  systems  in  existence;  it  is  the    sheets    firmly    but    loosely    by    the 
still  used  to  a  limited  extent.  clasps  through  the  holes. 


FIGURE    26:     Filing    on    edge    is    Uu- 

modern  way  of  filing.     The  vertical  file 

shown  here  is  a  geographical  file. 


FIGURE  27:     Here  is  a  typical  follow- 

uf3     file.     It's     sometimes     called     the 

memory  file.    Can  you  guess  why? 


S4 


THE  FILES  S3 

possible  to  start  in  a  small  way  with  just  as  many  states  as  are 
needed.  As  the  business  increases,  other  states  are  added  and 
sub-indexes  placed  in  those  states  where  correspondence  war- 
rants it.  Index  guides  for  the  names  of  towns  can  be  inserted 
and  alphabetical  guides  placed  behind  the  town  guides.  This 
plan  permits  the  unUmited  growth  of  a  fiUng  system  without 
destroying  the  old  guides  as  in  straight  alphabetical  fiUng. 

In  the  numerical  method  a  number  is  used  on  the  index 
guides,  and  the  decimal  plan  of  notation  is  usually  followed. 
A  separate  card  index  is  also  required,  in  which  the  names  are 
arranged  alphabetically. 

It  is  sometimes  claimed  that  where  the  number  of  letters 
to  be  filed  is  very  large  the  alphabetical  system  is  not  practical 
because  it  requires  so  many  subdivisions  of  the  alphabet.  It 
is  possible  to  secure  alphabetical  subdivisions  with  several 
thousand  guides  if  necessary;  and  important  letters  like  "S" 
would  contain  several  hundred  subdivisions  with  the  letters 
carried  sometimes  to  six  or  seven  places  in  such  names  as  Schmitt 
and  Schmitz.  It  is  obvious  that  with  an  index  as  large  as 
this  mistakes  will  occur  unless  the  clerk  is  extremely  accurate 
in  reading  the  index  and  placing  the  let-ter  where  it  belongs. 

Although  the  alphabetical  method  is  perhaps  the  simplest 
method  of  fiUng  and  indexing,  still  it  is  not  always  the  best. 
And  yet  it  is  almost  always  used  more  or  less  in  connection  with 
some  of  the  other  methods  we  shall  now  proceed  to  study. 

The  geographical  method  of  filing.  Where  the  corre- 
spondence comes  from  widely  scattered  sources,  or  where  the 
place  is  of  more  importance  than  the  person's  name,  a  geo- 
graphical method  of  filing  is  sometimes  preferable.  This  might 
be  true  in  handling  the  correspondence  of  the  sales  department, 
where  the  territory  is  divided  into  districts  or  agencies.  These 
files  are  usually  arranged  according  to  states,  in  alphabetical 
order;  under  each  state  the  towns  in  that  state  are  also  arranged 
in  alphabetical  order. 

If  there  is  not  enough  correspondence  to  justify  the  use  of 
town  guides  in  certain  states,  there  may  be  only  the  state  guide 
and  an  "A  B  C  index."  In  this  ABC  index  the  letters  are 
filed  according  to  name,  as  in  the  straight  alphabetical  system. 


86  OFFICE  TRAINING  AND  STANDARDS 

Of  course  if  the  correspondence  does  not  come  from  many  states 
and  towns,  the  state  guides  may  be  dispensed  with,  and  only 
town  guides  used,  arranged  alphabetically.  Under  each  town 
is  the  A  B  C  index. 

In  each  case  sub-guides  may  be  added  as  the  business 
increases,  and  when  the  correspondence  of  any  locality  or  indi- 
vidual warrants  it,  special  folders  may  be  inserted.  It  might 
be  necessary  to  remember  the  name  of  the  town  or  state  in  order 
to  find  certain  correspondence,  or  the  letters  from  different 
towns  by  the  same  individual  might  be  filed  in  separate  folders. 
On  the  other  hand,  the  name  of  the  individual  or  the  names  of 
firms  might  be  forgotten  more  easily  than  the  town  from  which 
he  or  they  wrote,  and  the  quickest  way  to  locate  them  would 
be  by  the  town  or  state. 

Filing  by  number.  When  vertical  fiUng  was  first  intro- 
duced, the  numerical  method  was  commonly  employed;  hence 
it  came  to  be  generally  understood  that  the  numerical  method 
was  always  used  with  the  vertical  file;  but  it  is  now  generally 
conceded  that  the  numerical  method  should  not  be  installed 
unless  the  alphabetical  or  geographical  will  not  answer. 

Another  mistaken  idea  in  regard  to  the  numerical  plan  was 
that  it  was  an  advantage  to  use  it  w^hen  the  volume  of  corre- 
spondence was  large.  If  it  is  a  disadvantage  to  use  the  alpha- 
betical or  geographical  method  in  a  large  business,  it  would 
be  a  double  disadvantage  to  use  the  numerical,  on  account  of 
the  greater  expense  in  filing  and  the  possible  loss  of  time  in 
finding  correspondence. 

The  real  advantage,  then,  gained  by  the  use  of  the  numerical 
system,  is  when  cross  references  are  necessary,  or  when  papers 
or  books  must  be  referred  to  under  more  than  one  heading. 
In  many  offices,  such  as  law  firms,  it  has  been  found  an  advantage 
for  each  customer  to  be  given  a  number  and  all  papers  and  files 
pertaining  to  that  case  filed  under  that  number. 

Nearly  all  libraries  are  indexed  numerically,  because  ref- 
erence must  be  made  to  the  book  by  name,  by  author,  or  by 
subject  matter.  The  majority  of  them  are  cataloged  under 
what  is  known  as  the  "Dewey  Decimal  System."  A  modi- 
fied form  of  the  decimal  method  is  appUed  in  classifying  some 


THE  FILES  87 

numerical  indexes.  There  would  seem  to  be  so  many  possi- 
bilities for  errors,  however,  that  only  an  expert  should  attempt 
to  install  such  a  method. 

In  the  ordinary  numerical  filing  the  guides  are  generally 
numbered  in  lO's  or  20's.  When  mail  from  a  new  correspondent 
comes  in,  he  is  assigned  the  next  consecutive  number.  His 
name,  address,  and  number  are  written  on  a  card  which  is  filed 
alphabetically  in  a  card-index  drawer.  The  letter  to  be  filed 
is  marked  in  the  upper  right-hand  corner  with  the  number 
assigned  to  that  correspondent  and  is  filed  in  a  manila  folder 
bearing  the  same  number.  The  folder  is  filed  numerically 
behind  the  proper  guide.  When  a  letter  comes  in  from  a  regu- 
lar correspondent,  the  card  index  is  consulted  to  find  the  number. 

Filing  by  date.  Suppose  we  want  to  write  to  Robert 
Bowen  about  two  weeks  after  our  last  letter,  especially  if  he 
hasn't  sent  us  a  reply.  If  we  had  a  chronological  file,  in  which 
the  guides  are  arranged  by  months  and  days  instead  of  by 
letters,  numbers,  or  towns,  we  could  file  Robert  Bowen's  letter 
two  weeks  ahead,  and  on  the  day  set,  go  to  the  file,  and  take 
out  his  letter.  This  kind  of  file  is  often  called  a  "follow-up 
file,"  and  if  properly  used  is  very  convenient. 

Every  business  firm  employs  some  plan  for  following  up 
dehnquent  correspondents.  It  may  be  for  the  purpose  of 
converting  a  prospect  into  a  customer,  or  for  collecting  a  past 
due  account,  or  for  circularizing  a  mailing  list.  In  each  instance 
it  is  impossible  to  depend  absolutely  upon  the  memory;  so  a 
method  of  filing  is  devised  for  calling  attention  automatically 
to  the  particular  date  when  the  next  letter  is  to  be  sent. 

A  special  drawer  of  the  filing  cabinet  may  be  used  for  this 
purpose,  or  the  correspondence  may  be  filed  in  the  usual  way 
and  a  follow-up  card  made  out  which  contains  a  record  of  all 
the  transactions.  By  means  of  31  daily  and  12  monthly  guides, 
any  material  which  needs  consideration  may  be  filed  under  a 
certain  date  and  automatically  come  up  for  attention  at  the 
correct  time.  A  central  "tickler"  file  for  all  the  employees  of 
an  office  who  have  follow  ups  has  sometimes  been  found  to 
save  time  and  to  be  practical  for  bringing  matters  to  the  atten- 
tion of  the  right  person  on  time. 


88  OFFICE  TRAINING  AND  STANDARDS 

Finding  letters  in  the  follow  up.  Right  here  one  point 
about  follow-up  or  chronological  files  which  is  sure  to  come  up 
might  well  be  considered.  After  Robert  Bowen's  letter  has  been 
placed  in  the  follow-up  files,  we  do  not  expect  to  see  it  again 
until  the  time  set  for  our  further  attention  to  it.  But  if  Robert 
Bowen  should  write  us  before  that  day  arrives,  we  should  want 
to  get  the  letter  that  we  placed  in  the  follow-up  file.  Unless  we 
remembered  the  follow-up  date,  the  only  way  we  could  find 
the  letter  would  be  by  going  through  the  entire  follow-up  file. 
A  number  of  interesting  methods  are  used  in  dififerent  ofhces  to 
obviate  this. 

One  office  manager  has  the  stenographers  make  an  eixtra 
carbon  copy  of  every  letter  they  write.  This  extra  copy  is 
then  placed  in  the  follow-up  file,  and  the  rest  of  the  correspon- 
dence goes  to  the  regular  files.  When  the  carbon  copy  comes 
up  on  the  day  set  for  the  follow  up,  if  the  matter  has  been 
attended  to,  the  extra  carbon  copy  is  destroyed.  If,  however, 
no  answer  has  been  received,  or  the  matter  has  not  been  attended 
to,  then  the  rest  of  the  correspondence  is  obtained  from  the 
regular  file  and  the  proper  steps  taken. 

This  method  insures  the  complete  correspondence  being  in 
the  files  and  available  at  all  times.  There  is  no  delay  caused 
by  looking  through  the  follow-up  file  for  a  letter  that  hasn't 
come  up  on  the  date  marked. 

Another  convenient  plan  that  is  used  in  one  office  is  to 
file  the  letter  alphabetically  or  numerically  and  the  carbon  copy 
chronologically.  This  is  done  by  placing  the  follow-up  date  on 
the  letter  and  also  on  the  carbon  copy.  The  original  letter  is 
filed  as  usual  in  the  regular  correspondence  files,  and  the  carbon 
copy  bearing  any  necessary  notations  is  filed  in  the  follow-up 
file  under  the  date  when  the  next  letter  is  to  be  sent.  If  it  is 
necessary  to  refer  to  the  original  letter,  it  will  be  found  in  the 
regular  file.  Should  a  reply  be  received  before  the  follow-up 
date,  which  we  will  suppose  is  March  23,  the  letter  is  referred 
to  and  is  found  with  "March  23"  marked  on  the  upper  right- 
hand  corner,  which  means  that  the  answer  to  the  last  letter 
will  be  found  under  the  guide  "March  23"  in  the  chronological 
file.  The  follow-up  date  may  then  be  changed,  or  the  corre- 
spondence handled  in  the  usual  manner. 


THE  FILES  89 

Another  plan  that  is  used  does  not  require  the  extra  carbon 
copy;  neither  is  a  letter-size  filing  cabinet  required.  And  where 
filing  space  is  at  a  premium,  this  plan  has  advantages  over  the 
extra-carbon  method.  A  3  x  5  index  card  is  made  out  giving 
the  name,  address,  date,  subject,  and  where  the  letter  is  filed. 

This  card  is  filed  chronologically  behind  the  guide  in  the 
card  index  showing  the  month  and  the  day  when  it  is  next  to 
receive  attention.  The  letter  and  carbon  copy  are  filed  in  the 
regular  files  after  marking  on  them  the  follow-up  date,  so  that 
if  an  answer  is  received  before  that  date  the  letter  can  be 
answered  in  the  usual  manner  and  the  follow-up  card  removed 
or  set  ahead  to  a  new  date. 

If  the  original  letters  are  filed  numerically,  the  regular 
card  index  may  also  be  used  as  a  ''tickler"  by  simply  using  cards 
with  the  days  of  the  month  printed  at  the  top  of  each  card. 
Metal  clips  placed  over  any  particular  date  will  be  in  a  straight 
row  and  make  it  easy  to  locate  any  desired  card.  This  makes  a 
double  fiUng,  since  the  cards  are  filed  alphabetically  and  the 
follow-up  date  chronologically,  and  is  therefore  more  expensive. 

What  topical  filing  is.  Topical  fifing,  or  filing  by  subject, 
also  requires  the  use  of  card  indexes.  Such  a  method  is  gen- 
erally used  only  where  the  subject  matter  of  the  letters  is  of 
great  importance,  and  the  fact  that  a  letter  comes  from  a  par- 
ticular concern  is  relatively  unimportant. 

Often  several  cards  must  be  made  out  for  each  letter  in 
order  to  index  it  thoroughly,  and  this,  of  course,  adds  to  the 
cost.  Further,  a  thoroughly  competent  person  must  do  the 
indexing  or  it  is  almost  valueless. 

One  big  diflftculty  in  subject  indexing  is  the  fact  that  no 
two  persons  are  likely  to  hit  on  the  same  word  or  phrase  to 
index  a  paragraph ;  and  at  different  times  the  same  person  might 
select  different  phrases.  Thus  reference  becomes  rather  un- 
certain unless  enough  index  cards  are  made  out  so  as  to  leave 
little  doubt  that  one  of  them  will  be  chosen  when  the  matter 
is  referred  to  later. 

On  account  of  this  tendency  to  refer  to  the  same  subject  by 
different  names,  topical  filing  should  not  ordinarily  be  employed 
unless  the  subjects  are  well  determined  and  a  natural  reference 


90  OFFICE  TRAINING  AND  STANDARDS 

established.  In  spite  of  these  considerations,  subject  fihng  is 
the  only  method  that  fits  the  requirements  of  some  concerns. 
Architects,  street  railways,  or  county  offices,  for  example,  might 
naturally  and  profitably  use  filing  by  subjects. 

The  alphabetical-numerical  method  of  filing.  It  is 
possible  to  combine  some  of  the  best  features  of  the  alphabetical 
and  numerical  methods  by  numbering  the  alphabetical  guides. 
Then  the  clerk  can  find  the  correspondence  by  the  alphabetical 
method,  which  is  direct  and  accurate,  and  can  file  them  by 
nimiber,  a  safe  and  rapid  way. 

A  comparison  of  different  filing  methods.  The  al- 
phabetical method  seems  the  most  natural  because  we  are 
all  perhaps  more  accustomed  to  the  dictionary  arrangement 
and  grouping  of  words.  It  is  therefore  probably  the  best  under- 
stood, and  should  perhaps  be  generally  used  before  attempting 
some  more  complex  method,  unless  there  are  apparent  advan- 
tages to  be  gained  by  the  adoption  of  such  a  method. 

It  should  be  remembered  that  both  the  alphabetical  and 
geographical  methods  are  direct  filing  methods  and  do  not 
ordinarily  require  the  double  indexing  which  is  necessary  in 
the  numerical  method.  Preparing  an  extra  card  index  is  not 
only  an  additional  expense,  but  it  may  require  more  time  to 
locate  a  letter  than  under  the  direct  plan.  In  both  the  numeri- 
cal and  geographical  methods  the  files  are  enlarged  by  simply 
inserting  additional  index  guides,  while  with  the  alphabetical 
method  some  of  the  guides  must  be  discarded  and  an  entirely 
new  set  must  be  substituted  in  order  to  take  care  of  the  increased 
correspondenc  e. 

One  point  in  connection  with  the  numerical  method  which  is 
generally  regarded  as  a  hindrance  is  that  it  requires  a  separate 
card  reference  index  to  make  it  workable.  On  the  other  hand, 
it  should  be  understood  that  the  card  contains  useful  informa- 
tion which  may  make  it  of  greater  value  than  its  cost  of  pro- 
duction. The  addressing  machine  can  sometimes  be  used  in 
making  out  the  cards,  and  the  same  cards  may  be  employed  in 
following  up  business. 

It  cannot  easily  be  claimed  that  any  one  filing  plan  is  better 
than  any  other,  since  every  business  must  of  course  select  the 


FROM       1UN2    RNj).        CORRESPONDENCE 

DEPARTMENT 


LIST 
DEPT. 


C2cc«i^     7l<K  Sx  3f7    /3 


JUN  2     LMA. 


PLATE 
DEPT. 


Cdrl  A  Elemm 

204  Paul   Jones  Bldg 

LoulsvUle  Ky 


9  20 


S2397B 


lUN  2    FJ. 


ORDER^ 

JUN  2    BAT. 


CORRESPONDENCE 
FILES 


SHIPPING  RECEIPT 


FIGURE  28:     In  one  office  the  correspondents  use  requisition  blanks  for  getting 

information  from  other  departments.     The  date  and  the  correspondent's  initials 

are  stamped  at  the  top  and  a  check  placed  against  the  department  from  which  the 

information  is  wanted.     That  department  writes  or  attaches  the  information. 

91 


OUT 

Request   for  Correspondence 
be  held  in  file  until  papers  are  returned! 


Papers  Wanted 


(Na 


Charged   to  <  Department  . 


X^ 


t..  ^aWe^vT 


Note  -  Make  separate  request  sheet  (or  each  subie 
and  correspondent  as  this  sheet  will  be  filed  in  pU 
of  letter  taken  from  the  file 


FIGURE  29:  There  is  never  any  mystery  as  to  who  has  correspondence  taken 
from  the  files  in  the  office  which  uses  this  form.  To  get  desired  correspondence  you 
fill  out  a  slip  like  this,  which  is  placed  in  the  file  drawer  when  a  letter  is  removed. 


J      Out  Card     A 


Given  to 

Reference 

Date 

Given  to 

Reference 

Date 

Given  to 

Reference 

Date 

FIGURE  30:  Here  is  a  little  different  form  of  out  card.  This  one  may  be  used 
again  and  again  until  all  the  blanks  are  filled.  The  tab  shows  above  the  top  of  the 
folder  and  in  this  way  you  can  tell  immediately  what  correspondence  is  missing. 

92 


THE  FILES  93 

method  best  suited  to  its  particular  purposes.  It  is  evident 
that  some  methods  which  are  best  for  certain  lines  of  work 
would  be  impossible  in  other  offices.  Whatever  the  method 
used,  an  intelligent  employee  must  be  depended  upon  to  make 
its  application  a  success. 

Removing  letters  from  the  files.  Correspondence  should 
never  be  removed  from  the  files  without  making  some  record 
to  show  when  the  paper  was  taken  out  and  who  is  using  it. 
Some  concerns  refuse  to  allow  the  removal  of  any  correspondence 
unless  a  properly  signed  requisition  is  furnished.  Others  insist 
that  material  is  to  be  kept  from  the  files  no  longer  than  48  hours, 
unless  the  requisition  is  renewed.  The  head  filing  clerk  is  the 
only  one  who  is  allowed  to  remove  papers,  and  he  is  therefore 
held  responsible  for  their  safe  return. 

One  concern  uses  this  method  for  telling  what  correspon- 
dence is  missing  from  the  files:  When  papers  that  have  been 
filed  are  required  for  reference,  the  requisitioner  fills  out  a 
blank  like  that  shown  on  page  92.  This  ''out"  sheet — as  it 
is  called — is  just  about  10  inches  high.  It  is  placed  upright  in 
the  folder  from  which  papers  have  been  taken,  and  the  word 
*'out"  shows  prominently  above  the  edge  of  the  folder. 

Thus  it  is  possible,  simply  by  glancing  through  a  drawer, 
to  tell  where  papers  have  been  removed.  The  filing  clerks 
every  so  often  check  through  the  drawers  for  which  they  are 
responsible.  Should  any  correspondence  be  held  for  some  time, 
apparently  without  reason,  a  note  to  that  effect  is  sent  to  the 
requisitioner.  When  finally  the  papers  are  returned,  they 
replace  the  "out"  sheet,  which  is  destroyed. 

Another  concern  has  the  filing  clerk  pin  a  colored  slip  to 
every  paper  that  leaves  the  files,  bearing  the  following  notice: 

This  correspondence  is  charged  to  your  department  and  must  be  returned 
to  the  files  promptly. 

Under  no  circumstances  are  these  papers  to  be  transferred  to  any  other 
department  except  through  the  file  room. 

Transferring  the  correspondence.  When  it  is  necessary 
to  make  room  for  later  and  more  important  papers  the  older 
correspondence  is  transferred.  The  only  object  in  keeping 
correspondence  after  it  has  been  transferred  is  to  have  available 


94  OFFICE  TRAINING  AND  STANDARDS 

important  letters  which  may  be  called  for  or  needed  as  evidence 
in  lawsuits.  It  is  evident,  therefore,  that  some  letters  and 
papers,  from  their  very  nature,  are  not  of  sufficient  importance 
to  be  kept.    They  may  therefore  be  destroyed  at  any  time. 

There  is  a  sHght  disadvantage  in  removing  all  the  corre- 
spondence at  one  time,  since  some  is  of  greater  importance 
than  others,  and  there  is  no  time  when  it  will  not  be  necessary 
to  refer  to  some  of  the  recent  mail.  When  the  mail  is  filed,  it 
simplifies  matters  to  indicate  the  date  for  "killing"  or  trans- 
ferring, or  the  less  important  matter  may  be  filed  in  different 
colored  folders  and  all  of  that  color  transferred  at  a  fixed  date. 
Some  concerns  prefer  to  arrange  the  two  upper  rows  of  their 
cabinets  for  six  months'  correspondence  and  transfer  to  the 
two  lower  rows  at  the  close  of  that  period.  In  another  six 
months  the  upper  rows  are  cleared  and  the  lower  rows  stored 
in  less  expensive  cabinets. 

How  long  to  keep  letters.  Differing  conditions  change 
the  length  of  time  it  is  necessary  to  keep  letters  in  different 
offices.  One  fairly  large  concern,  for  example,  keeps  letters 
in  the  current  files  for  only  six  months,  and  then  places  them 
in  the  "transfer  files."  The  transfer  files  are  similar  to  the 
current  files,  and  are  perfectly  accessible,  only  not  so  conve- 
niently located  in  the  filing  depaHment  as  the  current  cabinets. 
Papers  remain  in  the  transfer  cabinets  until  they  are  from  one 
to  six  years  old,  according  to  the  requirements  of  the  business. 
They  may  then  be  removed  to  a  warehouse  of  the  company, 
where  space  is  not  so  valuable  as  in  the  office,  or  they  may  be 
destroyed  then  and  there. 

The  filing  assistants.  The  first  essential,  if  you  wish  to 
become  a  filing  expert,  is  a  good  memory,  keen  sight,  and  skill 
in  reading  names  and  numbers.  Skill  must  also  be  attained  in 
arranging  names  in  exact  alphabetical  order.  Then  comes  the 
ability  to  tell  at  a  glance  which  name  corresponds  to  the  index 
and  finally,  with  accuracy,  to  place  the  paper  in  the  division 
where  it  belongs. 

These  essentials  can  be  acquired  through  persistent  practice 
and  training  for  accuracy,  which  will  be  of  service  in  any  kind 
of  work.     Begin  by  reading  at  a  glance  numbers  containing 


THE  FILES  95 

six  or  more  figures  and  then  try  to  reproduce  them  orally  from 
memory.  Write  the  figures  in  their  exact  order.  You  might 
be  asked  to  get  from  the  file,  numbers  346529  and  24638.  Could 
you  do  it  without  writing  down  the  numbers?  Where  the 
numerical  system  of  filing  is  used  there  are  many  large  concerns 
which  use  numbers  running  over  six  figures. 

You  should  also  train  yourself  to  read  quickly  groups  of 
words,  names,  and  firm  names,  arranging  them  in  alphabetical 
order  as  read.  Study  the  dictionary  and  directories  for  the 
purpose  of  understanding  the  exact  dictionary  arrangement  so 
that  you  can  carry  out  the  alphabetizing  of  words  to  the  last 
letter  of  a  word,  if  necessary.  Practice  wnriting  names  and 
firms  in  the  proper  arrangement  for  filing  and  always  observe 
the  key  which  will  be  used  on  the  index.  Then  file  the  papers 
in  the  divisions  where  they  belong  and  remember  that  100% 
accuracy  is  required.  If  you  become  an  expert  fihng  clerk 
you  may  reasonably  expect  to  be  called  upon  to  manage  some 
filing  department  where  efficiency  is  desired  and  rewarded. 

FILING  STANDARDS 

The  technique  of  filing 

L    Filing  is  putting  papers  safely  away  where  they  may  be  found  quickly 
when  wanted, 

2.  The  filing  method  must  be  suitable  for  the  business. 

3.  The  filing  clerk  must  thoroughly  understand  the  method. 

4.  The  filing  must  be  done  with  the  greatest  accuracy. 

5.  Remember,  you  might  as  well  throw  the  paper  out  of  the  window  as  to 
file  it  in  the  wrong  place. 

6.  Filing  clerks  must  be  quick  and  accurate  in  reading  names. 

7.  Clerks  should  have  good  memories  for  names  and  numbers. 

8.  Carbon  copies  of  the  answers  should  be  fastened  to  the  letters;  pasting 
is  easy  and  commonly  used. 

9.  The  papers  are  to  be  placed  in  the  folder  back  of  the  guide  index. 
10.    The  latest  papers  are  always  placed  in  the  front  of  the  folder. 
n.    Letters  should  be  filed  with  the  top  of  the  sheet  toward  the  left. 

12.  Letters  should  not  protrude  from  the  ends  of  folders:  the  files  should 
always  look  neat. 

13.  Never  remove  papers  from  the  files  without  making  some  note  of  the 
papers  that  are  removed. 

14.  An  "out"  card  shows  at  a  glance  what  letters  are  missing. 

15.  When  letters  are  filed  under  the  names  of  the  company,  they  are  filed 
under  the  first  word,  disregarding  the  word  "The." 


96  OFFICE  TRAINING   AND   STANDARDS 

16.  When  letters  are  filed  under  the  name  of  the  writer,  they  are  filed  under 
his  surname. 

17.  When  the  surnames  are  the  same,  the  given  names  determine  the 
position. 

18.  If  the  surname  and  the  given  name  are  the  same,  the  address  deter- 
mines the  position. 

19.  If  the  words  are  the  same,  the  qualifying  adjective  determines  the 
position. 

20.  When  the  word  "The"  is  the  beginning  of  the  firm  name,  it  is  not  con- 
sidered in  alphabetizing. 

21.  When  "and"  is  a  part  of  the  firm  name,  it  is  not  usually  considered  in 
filing. 

22.  Names  beginning  with  Mac  or  Mc  usually  precede  all  other  names 
beginning  \sath  M. 

23.  Letters  signed  by  an  individual  member  of  a  firm  should  be  filed  under 
the  firm  name,  unless  you  are  instructed  otherwise. 

24.  When  several  letters  are  received  from  one  firm,  they  may  be  placed 
together  in  one  folder. 

25.  All  letters  from  one  firm  should  be  put  in  the  same  folder,  even  if 
signed  differently. 

26.  Flat  filing  means  that  the  papers  lie  perfectly  flat  in  the  drawer, 

27.  The  spindle  is  the  oldest  and  simplest  form  of  flat  file. 

28.  The  box  file  is  the  cheapest  method  of  flat  filing  still  in  use. 

29.  The  Shannon  file  is  perhaps  the  most  common  flat  file  method  still 
in  use,  where  important  papers  are  filed  independently. 

30.  In  vertical  filing,  the  papers  stand  on  edge  in  the  drawer. 

31.  Vertical  filing  is  the  most  practical  and  the  most  commonly  employed 
in  correspondence  filing. 

32.  Papers,  letters,  cards,  and  in  fact,  nearly  every  kind  of  record,  are 
filed  by  names,  localities,  subjects  and  numbers. 

33.  The  alphabetical  method  is  the  most  commonly  used  system  of  filing. 

34.  Alphabetical  filing  should  be  employed  when  the  name  is  the  point 
most  commonly  used  or  remembered. 

35.  Geographical  filing  is  successfully  employed  in  sales  departments  or 
when  the  location  is  more  important  than  the  name. 

36.  Numerical  filing  is  employed  where  reference  must  be  made  to  the 
paper  under  more  than  one  heading. 

37.  The  numerical  file  with  the  card  index  is  accurate  and  practical  when 
cross  reference  is  necessary. 

38.  A  combination  numerical-alphabetical  method  combines  some  of  the 
rapidity  and  accuracy  of  both  methods. 

39.  The  chronological  file  consists  of  12  monthly  guides  and  31  daily 
guides,  with  folders. 

40.  Chronological  filing  is  used  in  follow-up  methods. 

41.  A  follow-up  file  insures  matters  being  brought  up  for  attention  at  the 
proper  time  in  the  future. 


THE  FILES  W 

42.  The  card  index  may  be  used  in  follow-up  service  by  using  twelve 
guide  cards,  one  for  each  month. 

43.  Topical  or  subject  filing  may  be  employed  when  it  is  an  advantage 
to  have  all  the  papers  on  any  one  subject  together. 

44.  Correspondence  not  often  referred  to  is  transferred  every  six  months 
or  once  a  year  to  the  transfer  files. 

45.  Important  letters  may  be  filed  in  manila  folders  when  they  are  to  be 
preserved  a  long  time. 

46.  Unimportant  letters  may  be  filed  in  green  folders  and  marked  when 
they  may  be  "killed"  or  refiled. 

STANDARD  QUESTIONS 

The  technique  of  filing 

1.  What  purposes  are  served  in  any  filing  method? 

2.  What  are  the  elements  of  a  good  filing  method? 

3.  Why  should  not  all  firms  have  the  same  method? 

4.  Why  should  a  head  filing  clerk  be  held  responsible? 

5.  What  are  the  four  general  methods  of  filing? 

6.  What  groups  of  office  records  are  filed? 

7.  What  is  a  cabinet,  a  guide,  an  index,  a  folder? 

8.  What  methods  of  filing  are  commonly  used? 

9.  What  was  the  earliest  method  of  filing  used? 

10.  What  is  probably  the  cheapest  method  now  employed? 

11.  What  method  is  most  generally  understood?    Why? 

12.  What  method  is  most  commonly  used  in  small  businesses? 

13.  What  method  is  now  most  generally  employed? 

14.  Which  method  of  filing  is  best  for  a  sales  agency  manager?    Why? 

15.  Which  method  of  filing  uses  the  card  index? 

16.  Which  method  of  filing  is  best  for  an  author? 

17.  Which  method  of  filing  is  best  for  a  library? 

18.  Which  method  of  filing  do  you  consider  the  safest? 

19.  In  which  method  of  filing  are  mistakes  most  likely  to  occur?    Why? 

20.  Which  method  is  considered  the  most  accurate?    Why? 

21.  Which  method  would  be  suitable  for  a  large  railroad  corporation? 

22.  What  is  meant  by  a  follow-up  method? 

23.  What  is  meant  by  the  alphabetical  method  of  filing? 

24.  What  is  meant  by  the  geographical  method? 

25.  What  is  meant  by  topical  filing? 

26.  What  is  meant  by  the  numerical  method? 

27.  What  is  meant  by  the  decimal  method  of  indexing? 

28.  What  is  the  object  of  the  alphabetical-numerical  method? 

29.  What  is  meant  by  the  chronological  method? 

30.  What  is  meant  by  transferring  the  correspondence? 

31.  When  the  day  arrives  on  which  a  letter  is  marked  to  be  "killed,"  is 
it  sent  to  the  dead-letter  office? 


98  OFFICE  TRAINING  AND  STANDARDS 

32.  What  is  meant  by  the  "desk  tickler"? 

33.  What  is  the  "tickler"  supposed  to  tickle? 

34.  When  should  an  "out"  guide  be  used  in  correspondence  filing? 

35.  How  may  the  card  index  employed  in  a  numerical  method  be  used  in 
follow-up  work? 

36.  Mention  other  practical  ways  in  which  the  card  index  is  employed? 

37.  Which  should  come  first  in  the  files,  the  C.  &  E.  I.  Ry.,  or  the  C.  &  N. 
W.  Ry.?    Why? 

38.  Under  what  name  would  you  file  the  Stanley  Morton  Co.? 

39.  Which  would  be  filed  first,  Clarence  Brown,  of  St.  Louis,  or  Clarence 
Brown,  of  Minneapolis. 

40.  In  which  order  would  you  file:  Brown  Bros.,  Chicago;  Brown,  Bar- 
rett and  Co.;  Brown  and  Carter;  James  R.  Brown;  James  J.  Brown;  William 
G.  Brown;  Brown  and  Barrett;  Brown  and  Co.;  Brown  Bros.,  New  York? 

41.  What  filing  method  would  best  suit  a  contractor? 

42.  What  filing  method  would  best  suit  a  lawyer? 

43.  What  filing  method  would  best  suit  a  city  government  office? 

44.  What  filing  method  would  best  suit  a  newspaper? 

45.  What  filing  method  would  best  suit  a  follow-up  method? 

46.  What  filing  method  would  best  suit  a  purchasing  agent? 

47.  What  filing  method  would  best  suit  a  state  government  oSice? 

48.  Name  some  points  which  might  decide  the  value  of  a  filing  method  for 
any  special  business? 

49.  What  may  a  geographical  method  of  filing  show  about  the  business? 

50.  Contrast  the  different  filing  methods  as  to  simplicity,  ease  of  filing, 
safety,  and  expense. 


CHAPTER  VII 

THE  PURCHASING  DEPARTMENT 

WHEN  we  want  a  bottle  of  ink  or  some  paper  to  write 
on,  we  drop  in  at  the  stationery  store  on  our  way  home 
and  buy  what  we  want,  paying  perhaps  10  cents  for 
the  ink,  and  25  or  50  cents  for  the  paper.  The  man  who  does 
all  this  for  a  business  house  is  called  the  purchasing  agent. 
He  may  spend  only  a  small  part  of  his  time  if  he  is  buying  for 
a  small  business,  or  he  may  have  a  large  staff  of  assistants,  if 
he  is  employed  by  one  of  the  large  corporations. 

The  object  of  the  purchasing  department.  Whatever 
the  size  of  the  business,  the  object  of  the  purchasing  department 
is  the  same: 

1.  To  buy  all  material  that  is  needed  by  the  business 

2.  To  buy  material  of  the  required  quality 

3.  To  buy  it  at  a  reasonable  price 

4.  To  see  that  deliveries  are  made  in  due  season 

It  is  obvious  that  where  all  the  buying  is  done  through 
one  man  or  one  department,  lower  prices  may  usually  be  obtained 
because  of  large  purchases,  closer  uniformity  of  material  assured, 
and  the  schedule  of  deliveries  checked  up  more  exactly  than 
where  each  department  makes  its  own  purchases. 

Purchase  requisitions.  The  purchasing  agent  buys  all 
material;  this  material  may  be  raw  material,  such  as  leather 
for  the  factory;  equipment  for  either  the  factory  or  the  office; 
manufactured  goods  ready  to  sell;  or  supplies  for  the  whole 
concern.  He  receives  requests  for  materials  and  supplies  from 
all  departments  of  the  company;  these  requests  are  called 
requisitions,  and  it  is  from  these  requisitions  that  the  pur- 
chasing agent  finds  out  just  what  material  is  wanted  and  how 
much  he  is  to  buy. 


100  OFFICE  TRAINING   AND  STANDARDS 

A  form  of  requisition  used  by  one  concern  is  shown  on  page 
101.  This  requisition  is  also  his  authority  for  buying  the  ma- 
terial wanted.  It  must  therefore  be  signed  by  the  manager, 
as  well  as  by  the  person  ordering  the  material. 

Usually  two  copies  are  made  of  this  requisition.  Just  how 
many  copies  should  be  made  depends  on  the  requirements  of 
the  concern.  The  purchasing  agent  must  have  one,  of  course. 
Then  if  the  person  making  out  the  requisition  keeps  a  copy,  he 
will  know  just  what  he  ordered,  and  when  the  material  comes 
in  can  use  his  copy  to  check  the  accuracy  of  the  count. 

In  some  concerns  both  copies  go  to  the  buyer,  who  notes  on 
the  duphcate  when  delivery  may  be  expected,  and  returns  it 
to  the  requisitioner;  the  copy  also  acts  as  an  acknowledgment 
from  the  purchasing  department  that  the  original  requisition 
has  been  received. 

As  soon  as  the  purchasing  agent  gets  the  requisition  which 
has  been  approved  by  the  manager  or  the  comptroller,  his 
next  step  is  to  buy  the  goods  requisitioned.  He  may  know 
just  where  to  get  exactly  what  is  ordered,  or  he  may  have  to 
make  a  search  for  it. 

Watching  the  market.  Right  here  comes  an  important 
part  of  the  work  of  the  purchasing  department — keeping  tab 
on  the  market  conditions,  as  to  both  prices  and  supply.  When 
there  is  a  plentiful  supply,  prices  are  usually  favorable,  and 
purchases  should  be  made  at  such  times,  if  possible.  Of  course 
it  isn't  always  possible  to  know  ahead  of  time  just  what  will 
be  required,  and  how  much;  but  a  carefully  planned  set  of 
records  will  help  to  eliminate  mistakes  and  uncertainty. 

Classified  information  for  the  buyer.  Every  purchasing 
agent  has  occasion  from  time  to  time  to  refer  to  his  record  of 
invoices  from  concerns  with  whom  his  house  has  previously 
dealt.  A  card  is  made  out  for  every  kind  of  article  purchased, 
giving  the  name  of  the  firm  and  a  complete  record  of  prices, 
discounts,  and  allowances,  together  with  pertinent  remarks 
as  to  service,  quality,  and  other  matters  of  interest.  He  also 
finds  it  useful  to  maintain  a  price  file,  showing  quotations  re- 
ceived on  the  material  his  concern  uses  or  is  likely  to  use,  with 
details  as  to  prices,  terms,  and  delivery. 


No. 


PURCHASE  REQUISITION   Date. 


Purchasing  Agent  Wanted 

Please  furnish Department  with  the  following: 


(State  quantities,  sizes,     approximate  prices  if  known,      and  sufficient    description  of  the  articles 
desired  so  as  to  identify  exactly  what  is  wanted.) 


Requisitioner_ 


The  requisitioner  must  not  write  below  this  line         Department   head. 


Ordered  from. 
Order  No 


Delivery  expected — Approved. 


FIGURE  31:  A  request  like  this  is  sent  to  the  purchasing  agent  when  material 
is  to  be  purchased.  In  the  blank  space  the  requisitioner  describes  the  material 
wanted,  signs  his  name,  and  then  sends  it  to  the  department  head  for  his  O.  K. 


No 

ACKNOWLEDGEMENT       r,,,, 
OF   REQUISITION          „,^„„, 

Your  requisition  for_ 

Department   for  the  following  received 

Department  head 

Delivery  expected — — 

FIGURE  32:  This  acknowledgment  of  requisition  is  simply  a  carbon  copy  of  the 
requisition  itself.  The  purchasing  agent  sends  it  back  to  the  requisitioner  as  an 
indication  that  he  has  received  the  requisition.     Then  the  requisitioner  holds  it. 

101 


Gentlemen: 

Please  give 


MARSHALL  &  SONS 

Boston,  Massachusetts 

Specifications  of  printed  matter 
submitted  for  price  quotation  to 


immediate  quotation  upon  thefoUowing  printed  matter,  the  specincation*  for  which  are  here  givm: 


Quantity 
Numtxii  of  pages 
Trimmed  Htejxxly 
Cover  jiie 

Stock,  body,  »ize,  quality, 
and  weight 

Stock  cover 
Inks.  t>ody 
Inks,  cover 
Numlwr  of  pagn  of 

composition  in  the  body 
Composition  on  the  cover 
Binding 

Number  of    illustration* 
Size  of  illustration* 
Number  of  illustrations  to 

the  page 
Delivery  of  the  copy  and 

cuts  to  you 
Proofs 
Delivery 

Specirt 


will  be  of  satisfactory  working  quality,  in  the  si«» 


Say  when,  provided  the  cuts  and  copy  are  delivered  to  you  as  stated  above 


Fill  in  spaces  left  blank  for  that  purpose,  then  sign  below  and  return  to  MARSHALL  h  SONS 
Boston,  Massachusetts,  addressing  envelope  "For  the  attention  of  the department." 


Respectfully  submitted. 


(Name  of  ) 
By 


FIGURE  33:     Here  is  a  specification  blank  such  as  described  on  page  103.     This 

one  happens  to  be  for  printed  matter,  but  the  same  idea  is  used  for  "shoes  or  ships 

or  seahng  wax."     These  specification  sheets  are  sent  to  concerns  handling  the  goods 

wanted;  and  the  one  who  gives  the  best  quotation  gets  the  order, 

102 


THE  PURCHASING  DEPARTMENT  103 

In  addition  to  the  "record  of  prices"  and  the  "record  of 
quotations"  the  purchasing  agent  must  be  able  readily  to  find 
catalogs,  price  lists,  and  other  circulars  received  from  different 
supply  houses.  These  are  usually  filed  by  a  numerical  plan. 
Two  or  more  cards  are  made  out  for  each  catalog,  one  showing 
the  firm  name  and  the  other  the  article  listed. 

The  information  on  these  cards  should  be  as  complete  as 
possible,  giving  the  names  of  the  firms  with  the  catalog  and 
price  list  numbers,  and  showing  all  the  reputable  sources  of 
supply.  On  page  106  are  shown  cards  like  those  used  by  pur- 
chasing agents  for  watching  prices  and  market  conditions. 

Sources  of  information.  In  addition  to  catalogs,  the  pur- 
chasing agent  also  studies  the  trade  papers,  and  often  is  able 
to  pick  up  valuable  news  affecting  market  prices  and  conditions. 
For  instance,  he  may  learn  that  because  of  some  happening 
in  the  locaUty  where  material  the  firm  uses  is  produced,  that 
particular  material  is  going  to  be  very  scarce,  and  that  by 
buying  now  instead  of  waiting  till  later,  he  may  be  able  to  get 
very  favorable  prices.  He  may  not  have  any  orders  to  buy 
this  material,  but  by  inquiring  of  his  manager  whether  or  not 
some  more  of  that  material  will  be  wanted  before  long,  he  can 
learn  if  it  is  wise  to  buy  it  now  and  save  money,  at  the  same 
time  making  sure  of  the  supply.  A  good  instance  of  this  was 
seen  in  the  fall  of  1917,  when  a  number  of  far-sighted  purchasing 
agents  saw  a  coming  shortage  of  coal,  and  laid  in  heavy  reserve 
stocks.     Statistics  clearly  showed  the  shortage. 

It  is  also  important  for  the  purchasing  agent  to  be  familiar 
with  the  terms  of  a  contract,  the  value  of  warranties,  the  lia- 
biUties  of  common  carriers,  and  to  know  under  what  circum- 
stances orders  may  be  recalled. 

Getting  estimates  or  quotations.  It  may  happen,  and 
often  does,  that  there  are  available  no  recent  prices  of  the  ma- 
terial to  be  bought,  and  it  becomes  necessary  to  get  "quotations" 
or  estimates  from  reliable  firms.  Where  several  firms  are  asked 
to  "bid,"  as  it  is  called,  a  specification  blank  hke  that  shown  on 
page  102  is  mailed.  When  the  bids  are  received  from  those 
concerns  interested  in  getting  the  order,  the  buyer  decides 
where  he  shall  place  the  order,  keeping  in  mind  the  three  require- 


104  OFFICE  TRAINING   AND  STANDARDS 

ments  of  quality,  price,  and  delivery.  Some  concerns 
manufacturing  a  very  high  grade  of  goods  ask  correspondingly 
high  prices,  while  others,  who  make  good  grades  at  low  or  rea- 
sonable prices,  may  be  handicapped  in  delivering  on  time; 
a  third  concern  may  be  able  to  make  quick  deliveries,  and  the 
price  may  be  right,  but  the  goods  are  not  up  to  standard  quaUty; 
hence  the  buyer  must  watch  all  three  factors. 

What  becomes  of  purchase  orders.  As  many  copies  of 
the  purchasing  order  are  made  as  are  necessary.  The  original 
is  sent  to  the  firm  from  which  the  purchase  is  made.  A  second 
copy  is  sent  to  the  receiving  department,  so  that  the  shipment 
can  be  checked  when  received.  Some  firms  omit  the  number 
of  articles  by  using  a  short  carbon  on  this  second  sheet;  this 
is  to  make  it  necessary  for  the  receiving  clerk  to  count  carefully 
every  article  to  determine  whether  the  correct  amount  has 
been  received.  The  third  copy  remains  in  the  purchasing 
department  and  is  filed  with  the  unfilled  orders.  Some  con- 
cerns make  a  fourth  copy,  which  may  be  used  for  follow-up 
purposes  in  special  cases. 

When  the  goods  have  arrived  at  the  receiving  department, 
and  have  been  counted,  the  second  sheet  is  returned  to  the 
purchasing  department,  is  checked  and  attached  to  the  invoice, 
and  sent  to  the  account  department  for  record  and  payment. 
The  third  copy  is  now  removed  from  the  unfilled  orders  and 
filed  with  the  filled  orders.  The  illustration  on  page  105  shows 
the  purchase  order  forms  used  by  one  concern. 

Unless  goods  ordered  are  received  by  the  time  they  are 
needed,  important  work  may  be  held  up  for  lack  of  the  material 
ordered.  One  purchasing  agent  uses  a  simple  follow  up  for 
checking  deliveries  promised  for  certain  dates. 

One  buyer's  follow  up.  He  uses  a  sheet  about  83/2^11 
inches,  ruled  with  31  columns  hke  that  shown  on  page  106. 
At  the  top,  these  represent  the  days  of  the  month.  In  the 
wider  column  at  the  left  of  the  sheet  is  written  the  name  of  the 
supply  house,  and  a  brief  summary  of  the  goods  ordered,  to- 
gether with  the  date  ordered.  A  pencil  check  mark  (  V )  is 
then  made  in  the  column  under  the  date  when  delivery  is  to 
be  expected. 


Date 


Accounting  Department 
L.  Williams  &  Sons, 


Freight 


Date  rec'd. 


No. 


O.K'.d  by 


Date 


Receiving  Department 
L.  Williams  &  Sons, 


Freight 


Date  rec'd. 


No. 


O.K'.d  by 


Date 


L.  Williams  &  Sons, 

I-Tew  London.  Conn. 


Please  furnish'  us  the  following  material  at  oncer 


Ship  via. 


Place  this  number  on  your  invoice 
Our  requisition  No.   498 
Terms 
Distribution 


L.  Williams  &  Sons, 

By 


Separate  at  this  line  and  return  to 


Acknowledgment  of  Order 


.191 


L.  WilHams  &  Sons, 
New  London,  Conn. 

We  acknowledge    receipt  of  your  order  No. 535.  and  will  ship   as   follows: 


FIGURE  34:     Here  are  the  purchase  orders  described  on  page  104.     The  one  in 

front  is  the  original  order.     The  concern  from  which  the  goods  are  ordered  tears 

off  the  lower  half,  fills  it  out,  and  returns  it  to  the  purchasing  agent.     This  teils  the 

purchasing  agent  when  and  by  what  route  to  expect  the  shipment. 

105 


A  rt-irip 

QUOTATIONS 

Size  and  quality                                                               Quantity                                       ] 

Date 

Firm 

Catalog 
file 

Terms 

Time  needed 
for  delivery 

Price 

Discount 

Freight 

FIGURE  35:  Purchasing  agents  must  keep  some  kind  of  records  of  quotations 
and  a  card  like  this  helps.  The  buyer  has  his  quotations  where  he  can  get  at  them 
and   he   does   not  have  to  get  new  prices  whenever  he  wants  to  buy  something- 


Daily  Follow-Up  On  Purchase  Orders 

Ordered 
from 

Date 
ordered 

Order 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

" 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

FIGURE  36:     A  follow  up  like  this  helps  the  purchasing  agent  keep  track  of  pur- 
chases.    In  the  first  three  columns  he  enters  the  details  of  each  order  and  checks 
the  date  when  delivery  is  due.     If  not  received  on  time  he  finds  out  why. 

106 


THE  PURCHASING  DEPARTMENT  107 

How  the  follow  up  works.  Orders  are  then  followed  up 
in  this  fashion:  from  two  to  five  days  before  the  date  set  for 
deUvery  the  pui-chasing  agent  or  his  assistant  calls  up  the  supply 
house  and  asks  what  progress  is  being  made  on  the  order.  The 
reply  will  fall  into  one  of  three  classes;  thus: 

1.  Delivery  will  be  made  on  time 

2.  Delivery  will  be  made  at  a  later  date  than 

originally  agreed 

3.  Can't  tell  when  dehvery  will  be  made 

If  the  supply  house  says  the  order  will  be  delivered  at  or 
before  the  time  agreed  upon,  then  no  mark  is  made  on  the 
follow-up  sheet.  But  if  delivery  is  going  to  be  late,  a  red  check 
mark  is  placed  against  the  new  date;  each  time  the  date  is 
postponed  a  new  red  check  is  made  against  the  new  date.  When 
dehvery  is  finally  made,  a  blue  check  mark  is  made  on  the  date 
of  delivery.  This  shows  that  the  order  has  been  completed, 
and  no  further  follow  up  is  necessary. 

The  red  check  mark  serves  a  double  purpose — it  not  only 
shows  that  deliveries  are  late,  but  it  also  shows  which  firms 
do  not  make  deliveries  when  promised.  This  information 
may  be  valuable  when  placing  orders  in  which  prompt  deliv- 
eries are  an  important  factor. 

Every  morning  the  follow-up  sheet  is  checked  with  the  ship- 
ments received  during  the  previous  day,  a  list  of  which  the  re- 
ceiving clerk  sends  to  the  purchasing  department  every  night. 

The  receiving  clerk,  who  is  often  the  stockkeeper  as  well  as 
shipping  clerk,  is  expected  to  receive  the  goods  dehvered,  and 
count  and  check  them  carefully  against  his  duplicate  copy  of 
the  purchase  order.  If  no  errors  are  found,  the  goods  are  turned 
over  to  the  storekeeper  and  the  purchase  order  sent  to  the 
purchasing  department,  where  it  is  filed  with  the  filled  orders. 
In  case  errors  or  damaged  goods  are  found,  the  mistakes  are 
followed  up  until  all  corrections  have  been  made  and  the  trans- 
action is  definitely  closed. 

Some  material  may  be  received  for  which  the  receiving  clerk 
has  no  duphcate  order.  This,  hke  everything  which  comes  in, 
should  be  counted,  checked,  and  recorded  so  that  an  exact 
inventory  of  the  stock  will  be  on  hand  at  all  times. 


108  OFFICE  TRAINING  AND  STANDARDS 

Where  the  stores  are  kept.  The  store  room,  where  the 
stores,  stock,  suppUes,  merchandise  on  hand,  raw  material, 
or  whatever  name  may  be  appUed  to  the  material  kept  there 
serves  two  purposes,  which  are  of  nearly  equal  importance. 
The  stores  must  be  safe  from  fire  or  theft,  and  they  must  be 
accessible  when  wanted.  These  two  purposes  should  be  served, 
whether  the  stores  are  kept  in  a  small  closet,  or  in  a  10-story 
building,  called  a  warehouse;  whether  they  are  kept  in  tanks, 
like  oil,  or  whether  they  are  spread  out  over  acres  of  ground, 
like  a  lumber  yard. 

Safety  from  fire  and  theft.  In  some  instances  fireproof 
vaults  are  required  for  safety;  in  others  metal  shelving  or  bins 
or  containers  will  serve  the  purpose.  For  our  purposes,  how- 
ever, we  will  consider  that  the  stores  are  kept  in  one  or  two 
rooms,  adjacent  to  the  shipping  department,  and  that  metal 
bins  and  shelving  like  those  shown  on  page  109  are  used  to 
hold  the  material. 

Accessibility  of  materials.  Unless  stores  are  easy  to  get 
at  when  wanted,  time  will  be  wasted  in  filling  orders.  Here 
again  there  enters  the  same  consideration  we  learned  when  we 
studied  filing.  We  decided  then  that  the  object  of  filing  papers 
is  to  be  able  to  find  them  again  quickly. 

In  considering  where  to  file  any  letter  or  paper,  we  first 
ask  ourselves  "Where  will  we  look  for  this  paper  when  we  want 
it?"  Likewise  in  a  storeroom  we  must  ask  ourselves  this  ques- 
tion: "When  we  want  this  material,  where  is  the  most  likely 
place  to  find  it?"  and  also:  "Is  it  convenient  to  get  at  when 
we  want  it?" 

Immediately  there  occurs  to  us  the  thought  that  the  ma- 
terial that  is  called  for  oftenest  should  be  placed  nearest  the 
counter  so  as  to  save  steps;  and  that  very  heavy  material  should 
be  stored  near  the  floor,  so  as  to  require  Httle  lifting.  As  soon 
as  we  have  decided  where  material  is  to  be  put,  then  we  ought 
to  label  each  bin  and  shelf  and  thus  tag  everything  in  a  bin 
or  on  a  shelf,  so  that  when  the  stock  clerk  is  away  the  manager 
or  any  authorized  individual,  can  find  material  needed  in  an 
emergency.  On  page  109  is  shown  the  way  one  concern  tags 
its  stock  bins. 


o 

BIN  TICKET 


Bir.  No 

Location 

Material 

Size  and  weight. 
Finish 


Send  this  ticket  to  office  when  only 

. .remain  in  bin,  and 

replace   it  withi   temporary  ticket. 


FIGURE  37:  A  ticket  like  this  hung 
on  each  bin  will  enable  even  an  in- 
experienced    person     to     find   material. 


o 

TEMPORARY  BIN  TICKET 


Bin  No._ 
Location. 
Material. 


Size  and  weight 

Finish . 

When  only is  left  in 

bin, send  regular  ticket  to  storekeeper 
and  put  this  in  its  place.  When  re- 
gular ticket  is  returned,  hang  both  to- 
gether until  stock  is  above  minimum, 
after  which  remove  this  ticket. 


FIGURE  38:  This  temporary  ticket 
takes  the  place  of  the  regular  one  when 
the    minimum    of  stock    is    in  the  bin. 


FIGURE  39:     The  shelves  in  this  bin       FIGURE  40:     In  this  office  the  stock 

can  be  adjusted  to  suit  material  of  any       clerks   do   their   work  on   roller   skates. 

size  required.     It  is  called  a  unit  bin.  Is  there  any  advantage  in  doing  this? 

109 


FIGURE  41  •  In  this  stock  room  even  an  inexperienced  worker  can  find  materia 
with  little  difficulty.  The  large  cards  on  the  ends  of  each  stack  tell  what  matenal 
is  kept  in  each  section  of  bins;  the  small  tags  what  is  kept  in  each  mdividual  bnn. 
The  si'c  of  the  bin  varies  according  to  the  material.     A  bin  tag  is  shown  on  page  1 09. 


THE  PURCHASING  DEPARTMENT  111 

But  the  work  of  the  stock  clerk  doesn't  end  with  putting 
material  in  the  most  convenient  places,  and  knowing  where 
those  places  are.  He  should  also  be  able  to  tell  exactly  how 
much  of  any  one  kind  of  material  is  on  hand  at  any  time. 

Knowing  how  much  stock  you  have.  There  are  two  rea- 
sons for  this.  The  stock  on  hand  is  of  course  a  part  of  the 
assets  of  the  company,  and  in  making  up  a  balance  sheet  the 
manager  must  know  how  much  stock  is  on  hand.  The  other 
reason  for  knowing  how  much  stock  is  on  hand  is  to  be  able  to 
obtain  a  new  supply  before  the  present  supply  runs  out. 

A  good  stock  clerk  never  lets  his  stock  of  any  article  run 
completely  out  before  ordering  a  new  supply.  On  the  other 
hand,  he  does  not  want  to  have  so  much  ahead  that  it  will 
deteriorate  before  it  is  used,  to  say  nothing  of  taking  up  space 
for  which  the  company  may  be  paying  rent. 

Taking  inventory  of  stock.  Counting  the  stock  is  called 
"taking  an  inventory."  An  inventory  is  simply  a  record  of 
what  you  have.  A  few  years  ago  it  was  considered  sufficient  to 
take  an  inventory  of  stock  every  six  months  or  even  once  a 
year.  Today  nearly  every  well-managed  business  insists  upon 
a  monthly  inventory  at  least,  depending,  of  course,  on  the 
nature  of  the  business. 

If  these  inventory  or  stock  records  are  correctly  handled 
they  show  the  value  of  the  stock  from  day  to  day,  prevent 
overstocking,  and  tell  whether  certain  articles  are  moving  dur- 
ing the  different  seasons.  They  also  are  of  great  value  in  the 
adjustment  of  fire  insurance. 

The  perpetual  inventory.  An  inventory  card  filed  topi- 
cally or  numerically  may  be  kept  by  the  storekeeper  for  each 
article  carried  in  stock.  The  card  shows  the  date,  the  amount 
received,  also  the  date  and  amount  dehvered,  leaving  a  per- 
petual balance  of  the  amount  on  hand.  The  maximum  and 
minimum  quantities  to  be  kept  in  stock  are  also  indicated, 
showing  the  proper  time  for  ordering. 

It  is  of  com-se  important  to  take  counts  from  time  to  time 
in  order  to  test  the  accuracy  of  the  stockkeeper's  balance. 
These  counts  are  usually  checked  by  an  inspector  while  being 
taken,  to  insure  their  reliabiUty. 


112  OFFICE  TRAINING  AND  STANDARDS 

PURCHASING  STANDARDS 

The  work  of  the  purchasing  department 

1.  The  primary  function  of  the  purchasing  department  is  to  buy  needed 
material  of  the  desired  quality  at  the  lowest  price  obtainable.  Sometimes 
this  department  is  responsible  also  for  receiving  and  checking  goods  when 
they  arrive. 

2.  By  having  all  purchasing  done  through  one  department,  it  is  often 
possible  to  secure  the  lowest  prices  and  close  uniformity  of  material;  also  to 
check  accurately  deliveries  of  material  bought. 

3.  A  purchase  requisition  is  a  written  request  for  the  purchase  of  supplies 
and  must  be  signed  by  the  manager  as  well  as  by  the  person  ordering  the 
material. 

4.  The  purchasmg  agent  keeps  close  watch  on  the  market  conditions 
relating  to  price  and  supply. 

5.  When  the  supply  is  plentiful,  prices  are  usually  favorable.  For  this 
reason  purchases  should  be  made  at  such  times,  if  possible,  even  if  the 
material  purchased  is  not  needed  at  that  particular  time.  By  the  time  the 
material  is  needed,  prices  may  be  considerably  higher. 

6.  A  carefully  kept  set  of  records  helps  to  eliminate  mistakes  and  un- 
certainty in  buying. 

7.  If  a  far-sighted  purchasing  agent  foresees  a  shortage  it  may  be  well 
for  him  to  purchase  more  than  enough  to  satisfy  the  present  demand,  counting 
on  saving  the  difference  in  higher  prices  later  on. 

8.  In  getting  estimates,  the  quality,  the  price,  and  the  time  an  article 
can  be  delivered  must  all  be  considered. 

9.  The  location  as  well  as  the  reliability  of  a  firm  may  affect  the  prompt 
delivery  of  an  order. 

10.  A  careful  check  should  be  kept  of  the  time  of  delivery  of  goods  in 
order  to  avoid  delays  on  subsequent  orders. 

PURCHASING  STANDARDS 

Values  and  prices 

1.  High  prices  do  not  always  mean  good  values. 

2.  The  supply  or  demand  for  an  article  does  not  always  fix  its  value. 

3.  Air  has  no  market  value,  although  it  is  very  common. 

4.  Sunshine  cannot  be  purchased,  although  it  is  very  common. 

5.  Purchasing  at  a  low  price  may  permit  selling  at  a  larger  profit. 

6.  Competition  in  buying  tends  to  raise  prices  because  the  buyers  bid 
against  each  other. 

7.  Much  competition  in  production  tends  to  lower  prices. 

8.  A  reputable  trademark  is  often  a  guarantee  of  quality. 

9.  Control  of  supply  may  often  fix  prices. 

10.  Flour  is  more  useful  than  diamonds,  but  there  are  not  many  diamonds, 
(he  demand  for  them  is  large,  the  supply  is  firmly  controlled,  and  the  prices  are 
therefore  very  high. 


THE  PURCHASING  DEPARTMENT  113 

PURCHASING  STANDARDS 

Points  of  law 

1.  An  offer  to  buy  or  sell  may  be  withdrawn  any  time  before  it  has  been 
accepted. 

2.  Your  offer  to  buy  is  made  when  your  letter  is  delivered,  not  when  it 
is  mailed;   but  you  may  withdraw  your  offer  before  the  offer  is  accepted. 

3.  The  contract  is  completed  when  the  letter  accepting  your  offer  is 
mailed;  therefore  you  cannot  withdraw  an  offer  after  the  acceptance  has 
been  mailed,  even  though  you  never  receive  the  letter  of  acceptance. 

4.  If  an  offer  is  worth  accepting,  accept  it  at  once,  or  it  may  be  with- 
drawn. 

5.  If  an  article  is  damaged  when  shipped,  or  while  in  transit,  and  the 
carrier  is  chosen  by  the  seller,  the  buyer  must  either  return  the  article  or  pay 
for  it.  If  he  is  compelled  to  replace  the  damaged  article  by  a  sound  one  at  a 
higher  price,  he  may  recover  the  difference. 

6.  If  an  article  you  buy  is  not  as  represented,  you  can  get  your  money 
back  or  collect  damages  actually  sustained  pro\aded  that  you  return  the 
article  without  unnecessary  delay. 

7.  If,  however,  you  purchase  damaged  goods  after  inspection,  then  you 
cannot  collect  damages.    "Caveat  emptor"  means:  let  the  buyer  beware. 

8.  If  you  buy  an  article  and  leave  it  in  possession  of  the  seller,  you  are 
the  loser  in  case  it  is  stolen. 

9.  If  you  buy  an  article  on  trial,  the  seller  is  the  loser  in  case  it  is  destroyed 
before  there  has  elapsed  a  reasonable  time  for  trying  it. 

10.  If  you  buy  with  the  privilege  of  returning,  you  are  the  loser  in  case 
the  article  is  lost. 

11.  There  are  differences  in  rules  of  law  in  the  different  states  of  the 
United  States;  generally  the  law  of  the  state  in  which  delivery  of  the  goods 
is  to  be  made  is  the  law  which  fixes  the  rights  of  the  parties. 

STANDARD  QUESTIONS 

The  work  of  the  purchasing  department 

1.  What  are  the  objects  of  a  purchasing  department? 

2.  Why  should  all  purchases  for  a  firm  be  made  through  one  department? 

3.  How  may  the  buyer  know  when  purchases  are  necessary? 

4.  What  are  purchase  requisitions? 

5.  What  information  is  required  by  the  purchasing  agent? 

6.  Why  should  the  purchasing  agent  watch  the  market? 

7.  Is  it  ever  wise  to  purchase  more  than  is  needed  simply  because  the 
price  is  low?    Why? 

8.  Where  does  the  purchasing  agent  get  his  information? 

9.  How  may  catalogs  and  price  lists  be  filed  and  indexed? 

10.  What  three  factors  must  be  watched  in  getting  estimates? 

11.  How  are  quotations  filed? 


lU  OFFICE  TRAINING  AND  STANDARDS 

12.  How  many  copies  of  purchase  orders  are  usually  made?    Why? 

13.  Why  should  all  deliveries  be  carefully  checked? 

14.  How  does  the  purchasing  agent  know  when  goods  are  received? 

15.  How  may  the  buyer  keep  track  of  an  order  before  it  has  been  delivered? 

16.  Why  must  the  buyer  know  the  financial  responsibility  of  the  firm  with 
which  he  deals? 

17.  Why  is  the  location  of  the  house  from  which  he  purchases  of  im- 
portance to  the  buyer? 

18.  What  are  the  advantages  of  buying  in  large  quantities? 

19.  Why  should  the  buyer  know  about  the  source  of  supply? 

20.  Why  should  the  buyer  know  about  the  cost  of  production? 

STANDARD  QUESTIONS 

Values  and  prices  in  purchasing 

1.  Do  high  prices  necessarily  mean  good  quality? 

2.  If  the  cost  price  of  an  article  is  reduced,  would  the  market  value 
also  be  reduced? 

3.  If  two  articles  cost  the  same  to  manufacture,  would  the  market  price 
be  the  same?    Why  or  why  not? 

4.  What  effect  would  a  large  crop  of  potatoes  have  on  the  market  price? 

5.  What  effect  would  a  great  war  have  on  the  market  price  of  wheat? 

6.  What  effect  would  a  small  crop  of  apples  have  on  the  market  price? 

7.  What  effect  would  a  large  number  of  manufacturers  have  on  the 
market  price  of  an  article? 

8.  What  effect  would  a  large  number  of  buyers  have  on  the  market 
price  of  an  article? 

9.  Why  does  a  diamond  necklace  cost  so  much  more  than  a  barrel  of  flour? 
10.    Why  does  the  most  useful  thing  in  the  world  have  no  market  value? 

STANDARD  EXERCISES 

Points  of  law  in  purchasing 

1.  What  is  meant  by,  "Let  the  buyer  beware?" 

2.  Is  the  innocent  buyer  protected  when  he  purchases  stolen  goods? 

3.  In  what  kind  of  establishment  does  the  purchasing  agent  buy  raw 
material? 

4.  What  would  a  wholesale  clothing  purchasing  agent  buy? 

5.  If  an  order  to  buy  is  made  by  letter  may  the  offer  be  withdrawn? 

6.  Is  the  offer  made  when  the  letter  is  posted  or  delivered? 

7.  If  an  offer  by  letter  is  accepted  by  letter  may  the  offer  be  withdrawn 
before  the  acceptance  is  received? 

8.  Is  the  offer  accepted  when  the  letter  is  mailed  or  delivered? 

9.  If  the  acceptance  by  mail  is  never  received,  is  the  contract  completed? 

10.  If  a  plainly  defective  article  is  inspected  and  purchased,  what  are  the 
rights  of  the  buyer? 


CHAPTER  VIII 

THE  SALES  DEPARTMENT 

OBVIOUSLY  the  purpose  of  the  sales  department  is  to 
sell  the  product  of  the  company  to  its  customers.  To 
understand  just  how  this  purpose  is  carried  out,  and 
the  relation  of  the  sales  department  to  the  rest  of  the  business, 
it  will  be  worth  while  to  glance  at  the  chart  on  page  116. 

This  chart  shows  how  one  firm  has  organized  its  sales  de- 
partment. The  sales  manager  is,  of  course,  the  head  of  the 
department,  and  under  him  are  the  district  sales  managers 
and  then  the  salesmen.  The  branch  managers  are  also  some- 
times called  district  sales  managers. 

What  the  salesmen  do.  The  salesmen  get  the  orders. 
They  may  travel  from  city  to  city,  or  they  may  be  located  in 
one  place,  which  they  cover  thoroughly,  or  they  may  sell  right 
in  the  store  itself.  The  traveling  salesmen  call  upon  their 
customers,  while  in  a  store  the  customers  come  to  the  salesmen. 
In  any  case  the  object  is  to  sell  the  product  of  the  firm. 

Doing  business  by  mail.  Considerable  business  is  done 
by  mail  as  well  as  by  salesmen.  This  is  usually  called  mail- 
order business.  Some  houses  do  nothing  else,  employing  no 
salesmen  at  all,  either  in  the  store  or  on  the  road.  Their  cus- 
tomers purchase  from  a  catalog. 

Advertising  as  a  source  of  sales.  There  is  another 
important  source  of  sales— through  advertising.  Advertising 
appropriations  run  from  the  cost  of  a  small  classified  adver- 
tisement into  milUons  of  dollars,  covering  full  pages  of  national 
magazines  and  requiring  careful  preparation. 

Having  thus  seen  what  the  sales  department  does,  we  are 
now  ready  to  consider  the  office  work  required  in  connection 
with  marketing  the  firm's  product. 

115 


Sales 
manager 


Advertising 
manager 


Copy  writers 


Rate  man 


Catalog  editor 


—  Record  clerks 


Mail  clerks 


Branch 
managers 


Salesmen 


Dealers 


Consumers 


-         Authorized  agents 


Direct 
salesmen 


r-  Retail  dealers 


Consumers 


Mail  order 
manager 


Follow-up  clerks 


Correspondents 


FIGURE  42 :     The  sales  manager  is  in  charge  of  the  sales  department.     Responsible 

to  him  in  this  organization  are  the  advertising  manager,  the  branch  managers,  the 

salesmen,  and  the  mail-order  manager.     The  chart  shows  what  each  is  responsible 

for.     All  sales  departments  may  not  be  organized  just  like  this  one  of  course. 


116 


THE  SALES  DEPARTMENT  117 

What  the  sales  manager  wants  to  know.  The  first  ques- 
tion the  sales  manager  asks  is:  "How  many  dollars'  worth  of 
goods  are  we  seUing?"  Having  found  this  out,  his  next  ques- 
tion is:  ''What  is  it  costing  us  to  sell  that  quantity  of  goods?" 
And  finally:  "How  can  we  sell  more  goods,  and  yet  keep  down 
the  expense  of  selling  them?" 

All  of  the  records  concerned  with  the  sales  department  are 
devised  with  these  three  questions  in  mind,  and  it  will  be  in- 
teresting to  see  how  the  sales  manager  gets  the  information 
he  is  seeking. 

Reports  the  salesmen  make.  Each  salesman  sends  in  a 
daily  report  of  his  prospects,  calls,  and  sales.  This  information 
is  transferred  to  the  office  card  records  and  summaries  made 
for  comparison.  From  these  statistics  charts  and  graphs  are 
prepared  showing  the  percentage  of  prospects  sold,  also  the 
general  relation  of  cost  to  sales  and  the  ratio  of  the  individual's 
sales  and  expenses  to  the  average. 

All  these  records  show  the  producing  ability  of  the  sales- 
man, whether  the  business  is  up  to  the  standard  in  each  dis- 
trict, and  the  cost  for  each  dollar  of  sales.  A  salesman's  typical 
daily  report  is  shown  on  page  118. 

Likewise  the  sales  slips  which  the  store  salesmen  send  in 
are  recorded  and  totaled.  In  large  establishments  where  much 
compiling  of  statistics  is  required  and  the  accounting  is  com- 
plex, a  tabulating  and  recording  machine  is  frequently  used. 

The  daily  sales  report.  From  these  sources,  and  from  the 
report  of  the  mail  orders,  the  summary  of  the  day's  sales  is 
made  up  and  placed  on  the  sales  manager's  desk  the  next  morn- 
ing. On  page  119  is  shown  the  report  that  is  made  to  one 
manager.  This  daily  report  shows  not  only  the  sales  made, 
but  also  the  cost  of  making  the  sales,  thus  answering  the  first 
two  questions  of  the  sales  manager. 

This  leaves  the  last  and  sometimes  the  most  important 
question  of  all:  "How  can  we  sell  more  goods  and  yet  keep 
down  the  expense  of  selhng  them?"  We  will  leave  to  books  on 
selHng  the  discussion  of  the  ways  and  means  used  to  increase 
sales,  and  confine  ourselves  to  examining  the  office  work  of 
the  sales  department  concerned  with  giving  the  sales  manager 


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Date 

Breakfast 

Dinner 

Supper 

Total 
meals 

Bed 

Total 

Railroad 

Laundry 

'bus 

Miscellaneous 

Miscellaneous 

Total 

Sales 

% 

Sunday 

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Tuesday 

Wednesday 

Thursday 

Friday 

Saturday 

Total 

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FIGURE  43:    Traveling  salesmen's  expenses  are  usually  paid  by  their  company. 

Every  concern  wants  to  know  just  how  much  each  salesman  is  spending  as  well 

as  earning,  so  they  require  the  salesmen  to  send  in  expense  reports  each  week. 


Daily  Report  of  Sales                              Expense  Report 

Dealers  Called  On 
The  namt  of  every  dealer  called 
on  mujt  be  given,  toeether  with 
hii  addrew  and  the  amount  sold 

Buyer's  Name 
This  must  be  shown 

II     Amount     •  The    following  blanks   must   be  filled  in 

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Total  expenses  for    day 

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FIGURE  44:     Many  salesmen  are  required  to  report  every  day  the  calls  made,  as 

well  as  the  names  of  the  customers  and  their  buyers.     One  company  gets  a  daily 

expense  report  at  the  same  time  and  compares  total  expenses  with  total  sales. 

118 


DAILY  SALES 

Chair. 

Tabic 

Dmaer, 

Beds  and 

bedding 

Parlor 
furniture 

Carpet. 

Kitchen 
furnish- 
ings 

Wall 
paper 

Miscel- 
laneous 

Shop 

Summary 

Sales 

Cost 

Salts 

Cost 

Sales 

Cost 

Sales 

Cost 

Sales 

Cost 

Sales 

Cost 

Sales 

Cost 

Sales 

Cost 

Sales 

Cost 

Sales 

Cost 

Sale, 

Cost 

5 

6 

7 

8 

10 

11 

IJ- 

li 

14 

IS 

■ifi- 

17 

18 

20 

21 

22 

23 

24 

25 

S6 

27 

28 

29 

30 

31 

Total 

FIGURE  45:     Most   sales  managers  are  live  wires — otherwise  they  wouldn't  be 

sales  managers.    They  want  the  latest  methods  and  they  want  to  know  just  what 

is  going  on  in  their  departments.    A  daily  report  of  sales  like  this  often  helps. 


DAILY  SALES  SHEET 

Date                                                                                                 Temperature 

Number  Visitors                                           Day                                      Weather 

Name  Description 

Lot 

Cash 

c 

o.d.      C 

harge 

coats        1 

Su,ts         1 

Dresses      | 

Sk.rts        1 

Petticoats 

Pur,         1 

No 

Sale 

A 

ccount     C 

Bale      C 

ale     ( 

-ost      E 

ale     C 

ost 

ale      C 

ost     £ 

ale      C 

»le 

FIGURE  46:     Here  is  another  daily  sales  report  for  the  sales  manager.     By  care- 
fully studying  these  every  day,  it  is  possible  to  compare  today's  sales  with  yester- 
day's and  with  the  same  day  last  year.    Any  increase  or  decrease  is  apparent. 

119 


ISO  OFFICE  TRAINING  AND  STANDARDS 

the  information  and  data  that  will  help  him  solve  his  problem 
of  increasing  sales  without  increasing  cost,  which,  after,  all,  is 
really  not  so  difficult  as  it  might  at  first  seem. 

Handling  sales  letters.  Three  methods  are  commonly 
used:  letters  to  salesmen,  sometimes  called  "pep"  letters  or 
"ginger"  letters;  letters  to  customers,  usually  called  sales 
letters;  and  du-ect  and  indirect  advertising. 

Letters  to  the  salesmen  are  sent  whenever  occasion  requires. 
Sales  letters  may  be  sent  only  occasionally,  or,  as  is  more  often 
the  case,  they  may  be  mailed  at  certain  intervals.  A  series  of 
letters  mailed  in  this  way  is  sometimes  called  a  follow-up  series 
because  each  letter  is  expected  to  follow  up  the  message  carried 
in  the  preceding  letters. 

Follow-up  sales  letters  are  usually  sent  out  on  a  prearranged 
schedule,  which  shows  just  when  the  proper  letter  is  to  be  mailed. 
On  page  121  is  shown  the  mailing  schedule  of  one  large  mail- 
order house. 

The  use  of  mailing  lists.  "Maihng  list"  is  the  name 
usually  given  to  the  hsts  of  names  of  prospects  to  whom  sales 
letters  and  other  advertising  material  are  mailed.  Some  sales 
managers  have  maihng  hsts  which  require  constant  attention 
to  keep  them  up  to  date,  because  of  changed  addresses,  deaths, 
and  so  forth.  One  sales  manager  considers  that  it  costs  more 
to  correct  his  prospect  lists  than  to  make  up  new  lists  of  pros- 
pects every  year.  Of  course  the  fist  of  customers  is  kept  up 
to  date  all  the  time,  but  this  man  found  there  were  so  many 
changes  in  the  prospect  lists  that  it  took  longer  to  make  the 
changes  than  to  make  up  new  lists.  He  gets  new  names  from 
advertisements,  clippings,  salesmen,  or  lists  purchased  from 
directory  and  mailing  companies  who  make  it  a  business  to  fur- 
nish Usts  in  various  fines  of  trade. 

Some  concerns  keep  their  mailing  fists  on  cards,  while  others 
use  addressing  machine  plates  or  stencils.  In  any  case  the 
method  of  fifing  is  usually  a  combination  of  the  alphabetical  and 
geographical  systems,  as  described  in  Chapter  VI. 

Recording  the  results  of  advertising.  Milfions  of  dollars 
are  said  to  be  spent  each  year  in  ineffective  advertising,  both 
direct  and  indirect.    Perhaps  one  reason  for  this  waste  of  money 


Series  t- 
To  Secure 
NewDealefs 


Clip 


15  Days 


Mailing  Z 


BtiOatiK 
ABC- 
E-HL 


Form 
Letter 
NDSor 

howWe 
Sell" 

Blank 

bisavnl 
iheet 

\Riturn 
Ho 

Put  On 
Dedlei- 
List 


aip 


30  bap 


MAIUNG5 


Mailitig 

3 

No 

Form 
Letter 

ftwW? 
Sell- 

Smped 

hepty 

ChD 
30Diys 


Beply 

{■dAIUNGZ 

No 

Series  AD 

fieply 

Peply 

No 

Drop 

Peply 

FIGURE  47:     This  schedule  shows  one  concern  just  when  to  mail  its  follow-up 

sales  letters.     Fifteen  days  after  number  1  is  mailed,  if  no  reply  is  received,  number 

3  is  sent — if  a  reply  is  received  number  2  goes  out— and  so  on,  to  the  last  one. 


SI 

Date 

S2 

SI 

S3 

S2 

S4 

S3 

S5 

S4 

S6 

S5 

SA 

S6 

SB 

SA     1 

rj 

5 

5 

20 

5 

20 

5 

20 

5 

20 

5 

20 

6 

21 

6 

21 

6 

21 

6 

21 

7 

7 

7 

7 

7 

7 

7 

Z2 

7 

22 

7 

22 

7 

22 

8 

8 

8 

8 

8 

23 

8 

23 

6 

23 

8 

23 

8 

9 

9 

9 

9 

9 

9 

9 

24 

9 

24 

9 

24 

9 

24 

10 

10 

10 

25 

10 

25 

10 

25 

10 

25 

11 

11 

11 

11 

11 

11 

11 

26 

11 

26 

11 

26 

11 

12 

12 

12 

12 

12 

12 

12 

27 

12 

27 

12 

13 

13 

13 

13 

13 

13 

13 

28 

13 

28 

13 

14 

14 

14 

29 

14 

29 

14 

30 

15 

15 

15 

15 

30 

15 

30 

15 

Ifi 

16 

16 

16 

16 

31 

16 

31 

17 

17 

17 

17 

17 

17 

17 

17 

17 

17 

1 

17 

1 

2 

18 

la 

18 

18 

18 

18 

18 

18 

18 

18 

19 

19 

19 

19 

19 

19 

19 

19 

19 

19 

3 

20 

20 

20 

20 

20 

20 

20 

20 

20 

20 

4 

20 

4 

20 

4 

21 

21 

21 

21 

21 

21 

21 

21 

21 

21 

22 

22 

22 

22 

22 

23 

23 

23 

23 

24 
25 

24 

25 

24 

25 

24 

25 

24 
25 

24 
25 

24 
25 
2S 

24 
25 
26 

24 
25 

26 

24 

25 
26 

9 
10 

25 
26 

9 
10 

25 
25 

9 
10 

27 

27 

27 

27 

27 

11 

28 

28 

28 

28 

28 

28 

28 

28 

28 

28 

12 

29 

29 

29 

29 

29 

29 

29 

29 

29 

29 

30 
31 

1 
Z 
3 

4 

30 

30 

30 

30 

30 

14 

30 

31 

31 
1 
2 
3 

4 

31 

1 
2 
3 

4 

31 

31 

31 

31 

31 

31 

16 

31 

1 

16 

1 

16 

2 
3 

4 

2 
3 

2 
3 

4 

2 
3 

4 

2 
3 

4 

2 
3 
4 

18 
19 

2 
3 

4 

17 
18 
19 

2 

3 

4 

17 
18 
19 

2 

3 

4 

17 
18 
19 

FIGURE  48:    This  mailing  schedule  isn't  as  complicated  as  it  looks.     The  symbols 

at  the  top  represent  a  series  of  follow-up  letters.     Find  in  the  second  column  the 

date  of  the  last  letter.    In  the  first  column  is  the  date  for  the  next  letter. 

121 


1 

1918 

roaow-up  record 

DOLLARS 

\ 

/ 

\ 

1 

-  snow    • 

THIBD       • 

fOURTli     - 

—  nnH      - 

-SIXTH        - 

ntcuuw 

FOUOW'UP 

ifiras 

OT 

\ 

1 

\ 

1 

—  SOWIH    -      J 

rasoMi  misnv 

^ 

' 

\ 

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y 

\ 

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\ 

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w 

' 

\ 

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\ 

\ 

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\ 

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N.      FIB.IMl«ra.lUTJUIEIUlVW&SO>T0CT      NOV.     DO. 

1    Utter    J   L 


Fifth 


>  11  M        7   14  21  ]• 

Weeks 


FIGURE  49:     A  graph  like  this  shows      FIGURE    50:     And   this    chart    shows 

just  how  much  business  each  letter  in      the  actual  sales  in  dollars  which  each 

the  follow-up  series  is  bringing  in.  letter  in  another  series  produced. 


Mill 


Advertising 
Cost 


I     I     I     I 


Number   of 
Inquiries 


I     I      I     I     I 


Number   of 
Orders 


II     I     II 


Amount   of 
Sales 


I     I     I     I     I 


rr 


Advertising 
per   Inquiry 


h  'l5  %  V;  '/?  'I<j    'If  'IS  'IL  'I-J  'Ig  'If    If  'IS  U  'Ij  'IS  If    'If  'IS  U  'Ij  '/»  'If    'If  'IS  'U  'h  'If  'H    If  IS  'IL  if  IS  'if 


FIGURE  51:    A  chart  like  this  one  presents  facts  just  as  truly  and  much  more 

vividly  than  long,  dull  columns  of  figures.     It  also  makes  possible  a  comparison  of 

sales  with  costs  at  a  glance.     Each  column  represents  one  year  of  advertising. 


THE  SALES  DEPARTMENT  123 

is  the  lack  of  an  effective  plan  for  checking  up  the  returns.  A 
concern  may  feel  sure  it  has  an  article  to  sell  that  is  desired  by 
a  certain  class  of  people,  or  it  may  be  able  to  write  an  interesting 
story  about  it,  or  it  may  know  the  best  time  to  advertise  the 
article.  But  it  is  not  sure  of  the  best  medium  through  which 
this  information  is  to  be  given  to  the  pubHc. 

On  this  account  it  is  necessary  to  keep  a  complete  record  of 
all  returns,  both  of  inquiries  and  the  actual  sales  closed.  Such 
records  usually  run  for  some  time  in  order  to  make  the  compari- 
sons of  different  mediums  of  any  value. 

The  results  obtained  from  the  sales  letters  are  recorded  and 
charted  for  the  sales  manager.  By  "keying"  each  follow-up 
and  form  letter  so  as  to  show  the  number  of  customers  secured, 
a  record  can  be  made  showing  which  letters  are  effective  and 
which  ones  should  be  strengthened  or  discarded. 

If  a  letter  or  a  maiUng  should  show  particularly  good  results, 
the  sales  manager  would  want  to  use  that  letter  again  some  time 
and  perhaps  get  some  good  points  to  use  in  other  letters.  The 
measure  of  any  effort  is  the  result  that  effort  produces,  and  it 
is  by  results  that  the  manager  determines  which  are  the  best 
letters  to  use.  The  charts  one  firm  uses  for  watching  the  results 
of  its  mailings  are  shown  on  page  122. 

How  to  check  advertisements.  Just  as  the  results 
obtained  from  sales  letters  are  checked,  recorded,  and  tabulated, 
so  also  are  the  results  obtained  from  advertising.  While  it  is 
sometimes  a  little  more  difficult  to  get  accurate  records  of  results 
from  newspaper  and  magazine  advertising  than  from  direct- 
by-mail  advertising,  yet  comparative  returns  are  not  at  all 
impossible.  Such  returns  are  particularly  valuable  in  planning 
the  advertisement  and  in  deciding  which  mediums  to  select 
for  advertising  purposes. 

In  one  method  that  is  employed  the  records  are  kept  fairly 
accurate  by  ''keying"  each  advertisement.  This  is  done  by 
using  some  symbol  or  distinctive  mark  in  the  address  line  or 
as  a  part  of  the  coupon  which  will  easily  identify  the  source 
of  the  inquiry.  Sometimes  a  department  letter  is  used,  such 
as  ''Department  A"  in  one  medium,  while  in  another  pubhca- 
tion  the  address  might  be  "Department  C."     Sometimes  the 


124  OFFICE  TRAINING  AND  STANDARDS 

numbers  in  the  address  may  be  either  street  or  room  numbers 
or  several  different  addresses  may  be  used. 

Many  advertisers  use  a  coupon  on  which  is  printed  the  name 
of  the  publication  containing  the  advertisement.  One  advan- 
tage in  using  a  coupon  is  that  it  usually  seems  to  make  it  easier 
for  the  writer  to  send  in  his  order  or  to  make  an  inquiry. 

When  the  repUes  come  in  they  are  assorted  according  to 
"key"  numbers  and  it  is  then  a  comparatively  simple  matter 
to  record  the  number  of  replies  to  the  advertisement.  The 
records  usually  show  the  name  of  the  pubhcation  and  all  neces- 
sary information  in  regard  to  the  advertisement  and  the  results 
obtained  from  that  advertisement. 

A  comparison  of  these  records  helps  the  manager  to  select 
the  profitable  media  and  to  discard  the  unprofitable  ones.  They 
also  indicate  the  size  and  kind  of  copy  which  is  most  productive 
and  the  season  of  the  year  when  the  best  results  are  obtained 
for  each  particular  proposition.  One  concern  uses  a  card  like 
that  shown  on  page  125  for  keeping  track  of  the  results  obtained 
from  its  advertising. 

Some  firms  insert  advertisements  in  series,  on  the  same  plan 
as  a  follow-up  series  of  letters.  This  also  requires  a  schedule, 
of  course,  just  Uke  the  letters,  and  the  form  on  page  125  shows 
how  an  eastern  corporation  keeps  its  records  of  advertisements 
which  appear  in  series. 

Filing  advertising  material.  Many  advertising  managers 
collect  clippings,  booklets,  lectures,  advertisements,  and  any 
other  material  that  will  be  of  service  in  preparing  copy  in  the 
future.  In  filing  this  material  the  same  principles  apply  to  a 
certain  extent  that  are  described  in  Chapter  VI.  Perhaps 
topical  filing  is  more  widely  used  than  any  other,  although  of 
course  circumstances  may  require  other  methods  or  combina- 
tions of  methods. 

Photographs,  drawings,  and  proofs  are  almost  always  filed 
in  vertical  file  drawers  if  possible.  If  they  are  arranged  nu- 
merically and  card  indexed,  reference  to  them  is  made  quickly 
and  conveniently  without  loss  of  time.  Of  course  when  a 
drawing  or  a  picture  is  removed  from  the  file  a  note  is  made 
on  the  card  showing  where  it  has  gone. 


SCHEDULE  OF  ADVERTISING 


Whole  number  _ 
Copy  sent 


.Cuts  s 
.Page. 


.Date  of  0 
.Copy  by. 
.  Lines 


MEDIUM 

DATE 

MEDIUM 

DATE 

PUBLICATION 

CLOSE 

PUBLICATION 

CLOSE 

Lines  to  be  treated  . 


Remarlts  on  copy. 


Remarks  on  illustrations . 


FIGURE  52:     Advertisements  which  are  inserted  in  series  have  to  be  prepared  en 

schedule.     That  is  what  this  form  does.     It  gives  the  dates  of  publication  and  when 

the  advertisement  must  be  ready.     It  is  helpful  in  writing  the  advertisement. 


1 

Publication                                                                                                                                    | 

Jan 

Feb 

Mar 

Apr 

May 

June 

July 

Aug 

Sept 

Oct 

Nov 

Dee 

Sp.iir  used 

Cost 

1 

3 

^ 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

Total 

Cost 

Jan 

Inquines 

Oid.rs 

Fd. 

Inquiries 

Orders 

Mi. 

Inquiries 

Ordeis 

Apt 

Inquiries 

Orders 

Mdy 

Inquiries 

Oul.rs 

Ju.„ 

Inquiries 

Oidtrs 

July 

Inquiries 

Orders 

Aus 

Inquiries 

Ord.rs 

Stpt 

Inquiries 

Orders 

Ocl 

Inquirir. 

Orders 

Nov 

Orders 

Dtc 

Inquiries 

Ordeis 

FIGURE  53:     Advertisers  in  magazines  want  to  know  just  how  much  business 

their  advertising  is  bringing  in.     This  card  provides  for  one  year's  advertising  in 

one  publication.     The  resulting  inquiries  and  orders  are  recorded  belowo 

125 


FIGURE  54:     This  is  one   method  of  filing  large  photographs,  maps,  or  charts 

They  are  placed  flat  in  the  drawers.     Although  they  are  not  so  easily  found  perhaps 

as  if  filed  vertically,  it  is  claimed  flat  filing  keeps  them  in  better  shape. 


FIGURE  55:     Here   is   a  cabinet   foi'    filing  large  photographs  vertically.     Since 

they  arc  placed  in  portfolios,  they  keep  clean.     Perhaps  the  greatest  advantage  of 

this  method  is  that  they  are  easily  located  by  means  of  the  inde.x  on  the  door. 

1  ■_'('. 


THE  SALES  DEPARTMENT  127 

More  or  less  difficulty  is  often  experienced  in  filing  electro- 
types, halftones,  and  zincs  because  it  is  not  always  easy  to  give 
a  "cut,"  as  it  is  called,  a  name  by  which  it  may  be  readily  iden- 
tified and  located.  One  plan  that  works  very  well  is  to  file  the 
cuts  by  number  in  shallow  drawers  provided  for  this  purpose. 

Proofs  of  the  cuts  are  pasted  on  looseleaf  sheets  83/2x11 
inches  and  filed  in  regular  file  drawers  with  guides  to  show  the 
subjects  covered.  A  notation  is  made  on  the  index  card  when- 
ever the  cut  is  sent  out,  showing  where  it  went  and  when  it 
will  be  returned. 

A  word  about  contracts.  Since  nearly  every  sales  and 
advertising  department  handles  many  contracts,  it  will  help  to 
become  familiar  with  a  few  basic  principles  covering  contracts. 
The  essential  features  of  a  contract  are:  first,  the  parties  must 
be  competent;  second,  there  must  be  a  consideration;  third, 
there  must  be  a  definite  subject  matter;  fourth,  there  must  be 
mutual  assent;   fifth,  the  time  must  be  definite. 

Contracts  are  written,  oral,  or  implied.  A  written  contract 
is  no  stronger  than  an  oral  or  implied  one,  but  the  method  of 
proving  oral  and  implied  contracts  is  sometimes  more  difficult 
than  the  written  contract,  which  generally  proves  itself.  One 
business  man  persistently  refused  to  sign  contracts  of  any  kind. 

''If  my  word  is  not  good,"  he  would  say,  "then  we  can't 
do  business." 

One  day  he  rented  a  building  for  five  years  at  a  rate  of  $500 
a  month.  As  usual  he  refused  to  sign  a  lease  and  he  soon  took 
possession  under  his  customary  oral  agreement. 

In  a  little  over  a  year  rents  rose  in  his  district,  an  industrial 
boom  set  in,  and  a  local  manufacturer  offered  the  owner  $800 
monthly  rental  for  the  building  on  a  10-year  lease.  The  owner 
accepted  and  mailed  the  occupant  a  30-day  notice  to  vacate. 

When  the  tenant  consulted  his  lawyer  he  was  advised  to 
move  because  the  law  provided  that  a  contract  which  cannot 
be  carried  out  in  less  than  a  year  must  be  in  writing,  and  he 
didn't  have  any  written  contract  at  all.  After  this  costly 
experience  the  sufferer  resolved  to  reduce  all  agreements  to 
writing,  and  in  the  case  of  all  involved  contracts  to  consult  his 
attorney  without  fail. 


128  OFFICE  TRAINING   AND  STANDARDS 

An  agreement  to  purchase  merchandise  valued  at  $500  or 
over  is  not  binding  unless  it  is  in  writing  and  signed,  or  unless 
paid  at  the  time  the  order  is  given.  For  example,  a  flour  sales- 
man telephones  a  customer  that  he  has  a  hundred-barrel  lot  of 
flour  for  sale  at  $5  a  barrel,  and  the  customer  says  he  will  take 
it;  the  salesman  orders  the  hundred  barrels  shipped  to  the 
customer  from  the  mill. 

Before  the  flour  arrives  the  price  falls  to  $4  a  barrel  and 
the  customer  refuses  to  accept  it.  He  cannot  be  compelled  to 
take  the  flour,  and  the  seller  stands  the  loss.  Had  the  customer 
signed  an  agreement  to  take  it,  or  had  he  paid  any  money  on 
account  of  the  purchase,  or  had  the  salesman  delivered  one 
barrel  of  flour,  the  customer  might  have  been  compelled  to  pay 
the  price  at  which  he  had  agreed  to  buy  the  flour. 

In  some  states  this  would  be  true  if  the  price  of  the  lot  of 
goods  sold  were  only  $50;  and  in  a  very  few  states,  neither 
writing,  part  delivery,  nor  payment  of  part  of  the  purchase 
price  is  required.  Agreements  to  sell  real  estate  must,  how- 
ever, always  be  in  writing. 

SELLING  STANDARDS 

What  a  contract  is,  and  when  it  is  binding 

1.  A  contract  is  an  agreement  between  two  or  more  persons. 

2.  The  parties  to  a  contract  must  be  competent. 

3.  A  contract  made  by  a  minor  is  not  void  but  it  is  voidable. 

4.  A  contract  made  with  an  intoxicated  person  is  not  enforceable,  if  it 
is  apparent  that  he  cannot  understand  what  he  is  doing. 

5.  The  "minds  must  meet"  or  agree  in  order  to  make  a  contract. 

6.  A  says:  " I  think  I  will  sell  my  horse  for  $100."    Bsays:  "I  accept." 
This  does  not  make  a  contract. 

7.  A  contract  made  by  force  is  illegal.    "An  act  done  by  me  against  my 
will  is  not  my  act." 

8.  Generally,  "The  outward  act  indicates  the  inward  intent." 

9.  Usually,  "A  wrong  is  not  done  to  one  who  knows  and  wills  it." 

10.  The  requirements  of  the  contract  must  be  lawful. 

11.  Generally,  "A  contract  cannot  arise  out  of  an  illegal  act." 

12.  Gambling  contracts  are  illegal  and  void. 

13.  A  contract  promising  to  make  a  gift  cannot  be  enforced. 

14.  There  must  be  a  valuable  consideration  in  every  contract. 

1.5.  Don't  change  the  consideration  when  accepting  an  offer  or  there  is 
no  contract. 


THE  SALES  DEPART:MENT  129 

16.  A  says:  "I  will  paint  your  house  for  $200."  B  says:  "I  accept  at 
$195."    This  does  not  make  a  contract. 

17.  The  contract  is  made  when  the  pfFer  is  accepted. 

18.  If  a  good  offer  is  made,  accept  at  once  or  it  may  be  withdrawTi. 

19.  If  you  intend  to  withdraw  an  offer  do  it  at  once  or  it  may  he  accepted. 

20.  If  you  accept  and  use  fruit  you  did  not  order,  you  must  pay  for  it, 
unless  the  circumstances  under  which  it  comes  to  you  indicate  tliat  it  \va> 
intended  as  a  gift  or  that  it  was  not  to  be  paid  for.  But  a  person  cannot  make 
you- his  debtor  by  imposing  upon  you  the  inconvenience  of  rejecting  benefits 
that  he  forces  upon  you. 

21.  In  some  states  a  contract  is  valid  if  dra\\Ti  on  Sunday. 

22.  Don't  make  an  oral  contract  when  you  can  make  a  written  one. 

23.  A  contract  is  legal  if  written  with  a  lead  pencil. 

24.  An  oral  contract  is  usually  as  binding  as  a  written  one. 

25.  Agreements  not  to  be  carried  out  within  a  year  must  be  in  writing. 

26.  In  many  states  a  contract  to  purchase  goods  in  value  over  $50  must 
be  in  writing. 

27.  Contracts  for  the  purchase  of  real  estate  must  be  in  ^Titing. 

28.  Leases  for  over  a  year  should  be  in  writing. 

29.  Pay  something  on  an  oral  offer  if  you  want  to  bind  the  bargain. 

30.  There  is  less  opportunity  for  dispute  in  written  than  in  oral  contracts. 

31.  A  promises  to  pay  B  $100  in  potatoes.    This  is  a  good  contract. 

32.  You  get  in  a  ferry  boat  and  are  rowed  across  the  stream.  This  is  an 
implied  contract. 

33.  It  is  a  serious  offense  to  change  or  erase  contracts  without  the  consent 
of  all  parties  concerned;  a  contract  changed  without  the  consent  of  all  the 
parties  is  not  enforceable. 

SELLING  STANDARDS 

Some  legal  points  in  selling 

1.  A  man  cannot  sell  that  which  has  ceased  to  exist. 

2.  He  may  contract  to  sell  a  crop  which  is  not  in  existence. 

3.  An  out-of-style  suit  is  as  serviceable  as  ever  but  not  so  valuable. 

4.  A  diamond  is  very  valuable  but  not  particularly  useful. 

5.  Sunlight  is  useful  and  serviceable  but  not  valuable. 

6.  Air  has  no  value  because  no  one  wishes  to  buy  it,  although  it  is  very 
useful. 

7.  You  may  be  richer  if  you  double  the  price  of  3'our  land,  but  you  do 
not  create  any  wealth. 

8.  If  you  take  an  article  home  on  approval,  the  sale  is  not  made  unless 
you  keep  the  article  beyond  a  reasonable  time  to  decide  whether  you  want  it. 

9.  If  something  remains  to  be  done,  the  sale  is  not  made  until  the  work 
is  completed. 

10.  If  delivery  is  to  be  made,  the  owner  is  responsible  until  it  is  delivered. 

11.  The  delivery  of  an  article  does  not  constitute  a  sale. 


130  OFFICE  TRAINING  AND  STANDARDS 

12.  An  article  may  be  delivered,  to  be  paid  for  on  the  in  talment  plan. 

13.  If  goods  purchased  on  the  instalment  plan  are  destroyed  by  fire,  the 
purchaser  is  the  loser. 

14.  If  you  buy  an  article  with  the  privilege  of  returning,  the  sale  is 
completed. 

15.  If  goods  bought  with  the  privilege  of  returning  are  stolen  while  in  your 
possession,  you  are  the  loser. 

16.  If  you  take  home  an  article  on  approval  and  it  is  stolen,  the  store  is 
the  loser. 

17.  If  you  buy  an  article  which  was  delivered  at  your  home  but  stolen 
before  it  reached  you,  you  would  be  the  loser. 

18.  If  you  buy  an  article  which  was  lost  in  delivery,  the  store  would  be 
the  loser. 

19.  A  promise  to  perform  certain  work  is  a  valuable  consideration. 

20.  One  dollar  is  a  valuable  legal  consideration. 

21.  Love  and  esteem  are  good  considerations,  but  a  good  consideration  is 
not  what  the  law  requires  for  a  valuable  consideration. 

22.  A  married  man  should  not  execute  a  deed  without  his  wife's  signature, 

23.  A  married  woman  should  not  execute  a  deed  without  her  husband's 
signature. 

24.  A  chattel  mortgage  is  salable,  but  the  goods  must  not  be  sold  without 
permission. 

25.  The  unpaid  seller  may  stop  goods  in  transit,  if  the  buyer  fails, 

26.  If  the  buyer  has  received  his  bill  of  lading  and  transferred  it,  the 
sell  r  cannot  take  the  goods. 

27.  A  person  without  a  title  can  sell  negotiable  papers  to  an  innocent 
purcha;-er  before  they  are  due  and  the  title  of  the  purchaser  will  be  good  unless 
the  paper  was  stolen. 

28.  A  person  can  sell  an  article  left  in  his  possession  to  an  innocent  pur- 
chaser and  the  owner  will  not  be  able  to  recover  it. 

29.  Generally  one  cannot  give  a  better  title  than  he  possesses,  subject 
to  the  exceptions  in  the  preceding  paragraphs. 

30.  If  the  buyer  refuses  to  accept  the  sold  article,  the  remedy  is  to  sue 
for  damages  or  to  enforce  the  contract. 

STANDARD  EXERCISES 

The  law  of  sales 

1.  Mr.  Fall  purchased  a  bill  of  goods  amounting  to  $100  and  paid  for 
them  with  a  check  which  was  accepted  and  the  bill  marked  paid.  Is  Mr.  Fall 
discharged  from  any  other  liability? 

2.  A  merchant  sold  a  hat  to  Mr.  Fast  for  $5  cash.  The  hat  was  delivered 
at  Mr.  Fast's  place  of  business  but  he  never  received  it.  Who  was  liable  for 
the  loss  and  why? 

3.  Mr.  Cone  purchased  a  horse  from  Mr.  Lloyd  for  S200.  It  was  agreed 
that  the  horse  should  be  delivered  in  a  week  and  paid  for  in  four  weeks.    Two 


THE  SALES  DEPARTMENT  131 

days  after  the  contract  was  made  the  horse  was  killed  by  lightning.  Who  would 
be  the  loser  and  why? 

4.  Mr.  Hill  agreed  to  purchase  from  Mr.  Ives  a  horse  for  S300  provided 
he  could  try  it  one  week  on  approval.  During  the  second  day  while  in  Mr. 
Ives'  possession  the  horse  was  killed  by  fire.    Who  was  the  loser  and  why? 

5.  Mr.  Hunt  agreed  to  purchase  an  automobile  from  Mr.  Howe  for 
$1,000  provided  the  car  was  painted  before  delivery.  Before  the  painting  was 
finished  the  car  was  destroyed  by  fire.    ^Vho  was  the  loser  and  why? 

6.  Mrs.  Cone  purchased  some  furs  valued  at  SlOO  with  the  agreement 
that  she  could  return  them  any  time  within  a  week  if  not  satisfactory.  Before 
the  end  of  the  week  the  furs  were  stolen.    Who  would  be  the  loser?    Why? 

7.  Mr.  True,  a  country  merchant,  orders  by  mail  a  bill  of  goods  amount- 
ing to  $200.  The  goods  were  promptly  shipped  as  ordered  but  were  destroyed 
in  transit.  Must  True  pay  for  the  goods  he  never  received?  If  he  doesn't  have 
to  pay,  who  would  ?    Why  or  why  not? 

8.  Mr.  Sells  bought  a  riding  horse  from  Mr.  Tine  for  $300.  After  riding 
a  few  miles  the  horse  went  lame.  Mr.  Sells  demanded  the  return  of  his  money, 
claiming  misrepresentation.    How  much  can  he  recover? 

9.  Mr.  Camp  authorized  his  coachman  to  sell  a  riding  horse  for  $200. 
The  coachman  warranted  the  horse  to  be  sound,  although  it  was  not.  For 
how  much  is  Mr.  Camp  liable? 

10.  Mr.  Small  ordered  and  paid  for  a  suit  of  clothes  from  his  tailor.  The 
clothes  were  finished  and  ready  for  delivery  when  the  shop  and  contents  were 
burned.    On  whom  does  the  loss  fall?    Why? 

11.  Mr.  White  takes  cloth  to  his  tailor  to  be  made  into  an  overcoat  for 
$20.  Mr.  White  is  notified  that  the  coat  is  finished,  but  before  he  gets  it  the 
shop  burns.  Must  Mr.  White  pay  the  $20  and  the  tailor  pay  for  the  cloth? 
Why  or  why  not? 

12.  Mr.  Hunt  ordered  by  letter  a  table  which  he  had  examined  at  the 
store  the  day  before.  When  the  table  was  delivered,  he  refused  to  pay  for  it, 
as  he  did  not  like  it.    Can  the  merchant  collect?    Why  or  why  not? 

13.  Mr.  Hart  ordered  by  telephone  a  bedroom  set  which  he  had  seen  m 
a  show  window  marked  $75.  When  the  furniture  was  delivered,  Mr.  Hart  did 
not  like  it  and  refused  payment.  Can  the  merchant  collect  the  price  of  the 
furniture?    Why  or  why  not? 

14.  Mr.  Brown  employs  Mr.  Black  to  buy  a  car  for  him  at  an  auction 
sale.  Mr.  Black  buys  the  car  with  his  own  money  and  sells  it  to  Mr.  Brown  at 
a  profit  of  $150.    What  remedy  has  Mr.  Brown?    Why? 

15.  A  customer  purchased  a  table  on  credit,  but  at  the  expiration  of  the 
time  for  which  credit  was  extended  he  did  not  make  payment.  Can  the  mer- 
chant recover  the  table?    Why  or  why  not? 

16.  Mr.  Bell  lost  his  watch.  It  was  found  by  Mr.  Coin,  who  sold  it  to 
Mr.  Doyle,  an  innocent  purchaser.  Can  Mr.  Bell  recover  the  watch  from  Mr. 
Doyle?    WTiy  or  why  not? 

17.  Mr.  Ball  agreed  to  purchase  a  watch  if  it  proved  satisfactory  on 
10  days'  trial.    Before  the  10  days  expired  Mr.  Ball  sold  the  watch  to  Mr. 


132  OFFICE  TRAINING   AND  STANDARDS 

Davis.    Can  the  jeweler  recover  the  watch  or  to  whom  must  he  look  for  his 
pay?  Why? 

18.  Mr.  Bates  made  an  oral  agreement  with  Mr.  Call  that  he  would  sell 
to  the  latter  200  tons  of  coal  at  $6  a  ton,  provided  the  order  was  received 
within  15  months.  Mr.  Call  sent  in  the  order  in  13  months  and  Mr.  Bates 
refused  to  make  shipment.    Is  Mr.  Bates  liable?    Why  or  why  not? 

19.  Mr.  Hyde  purchased  S400  worth  of  goods  from  Mr.  Ives  and  gave  in 
payment  Mr.  Brown's  note  for  $400,  indorsed  "without  recourse."  Mr.  Ives 
was  unable  to  collect  on  the  note  and  sued  Mr.  Hyde.  Must  Mr.  Hyde  pay 
for  the  goods?    Why  or  why  not? 

20.  Mr.  Day  agreed  to  sell  his  automobile  to  Mr.  Barr  for  $1,000  and 
Mr.  Barr  made  a  payment  of  $25.  Later  Mr.  Day  sold  the  car  for  $1,200  and 
returned  the  $25  to  Mr.  Barr.    What  recourse  has  Mr.  Barr? 

STANDARD  QUESTIONS 

The  sales  department 

1.  What  is  the  purpose  of  the  sales  department? 

2.  How  is  this  purpose  carried  out? 

3.  What  do  the  salesmen  do? 

4.  What  is  meant  by  "mail-order"  selHng? 

5.  Is  advertising  an  important  source  of  sales?    Why? 

6.  What  three  facts  does  the  sales  manager  want  to  know? 

7.  What  is  the  purpose  of  keeping  records  in  the  sales  department? 

8.  What  do  the  daily  reports  from  salesmen  show? 

9.  What  becomes  of  the  information  sent  in  by  the  salesmen? 

10.  Is  there  any  way  of  handling  a  large  volume  of  statistics  quickly  and 
accurately? 

11.  What  does  the  daily  sales  report  show  the  sales  manager? 

12.  What  three  methods  are  used  to  increase  sales? 

13.  What  are  "pep"  letters? 

14.  What  are  sales  letters? 

15.  What  is  meant  by  a  follow-up  series? 

16.  How  are  follow-up  letters  usually  sent  out? 

17.  What  is  a  mailing  list? 

18.  How  is  the  mailing  list  kept  up  to  date? 

19.  How  are  mailing  lists  filed? 

20.  Why  is  it  necessary  to  keep  a  record  of  advertising? 

21.  What  do  advertising  records  show? 

22.  What  is  meant  by  "keying"  an  advertisement  or  a  letter? 

23.  Why  are  letters  and  advertisements  keyed? 

24.  Describe  how  an  advertisement  may  be  keyed. 

25.  Why  are  coupons  used  in  advertising? 

26.  What  is  done  with  the  coupons? 

27.  Describe  a  schedule  and  explain  how  it  is  used. 

28.  What  kind  of  material  is  filed  in  the  advertising  department? 


THE  SALES  DEPARTMENT  133 

29.  What  method  is  used  in  the  advertising  files? 

30.  What  kind  of  illustrations  are  used  in  the  advertising  department? 
Name  as  many  kinds  as  you  can  recall. 

31.  How  are  illustrations  filed  in  the  advertising  department? 

32.  What  is  a  "cut?" 

33.  Name  the  different  kinds  of  cuts. 
34o    How  are  cuts  filed? 

35-    Describe  a  system  for  keeping  track  of  cuts. 

STANDARD  QUESTIONS 

Concerning  contracts  and  other  legal  papers 

1.  How  many  persons  does  it  require  to  enter  into  a  contract? 

2.  What  is  meant  by  the  saying  that  the  minds  must  actually  meet  in 
order  to  form  a  complete  contract? 

3.  Are  oral  contracts  enforcible? 

4.  Are  unlawful  contracts  enforcible? 

5.  Are  contracts  dated  on  Sunday  void? 

6.  Are  contracts  made  by  minors  voidable? 

7.  Are  contracts  made  by  insane  people  enforcible? 

8.  Are  contracts  made  by  intoxicated  people  enforcible? 

9.  Why  are  not  oral  contracts  generally  considered  as  secure  as  written 
contracts? 

10.  Is  an  oral  contract  enforcible  if  not  carried  out  within  a  year? 

11.  Is  a  contract  promising  to  make  a  gift  enforcible? 

12.  Can  contracts  for  services  be  broken? 

13.  If  one  party  to  a  contract  fails  to  perform  his  part  of  the  agreement, 
can  the  other  party  be  held  responsible? 

14.  Can  a  person  be  punished  for  not  paying  according  to  the  contract 
if  he  actually  does  not  have  the  money? 

15.  What  is  meant  by  a  contract  under  seal? 

16.  B  agrees  to  buy  a  horse  from  A  for  $200.  If  the  horse  dies  before  it 
is  delivered  to  B,  is  B  responsible? 

17.  A  makes  an  offer  to  sell  B  a  lot  for  $2,000.  Before  B  accepts  the 
offer,  A  changes  his  mind  and  withdraws  his  offer    Can  B  force  A  to  sell? 

18.  A,  who  lives  in  Montana,  offers  to  sell  for  $5,000  a  farm  to  B,  who 
lives  in  Iowa.  On  November  2  A  writes  to  B  that  he  is  withdrawing  the  offer. 
On  the  same  day  B  writes  A  accepting  the  offer.    Can  A  be  forced  to  sell? 

19.  A  gives  B  a  note  in  which  he  promises  to  pay  $200  in  potatoes  at  the 
market  value.    Is  this  a  good  contract? 

20.  A  promised  to  pay  B  $500  if  he  lost  a  bet  he  made  with  B.  He  lost 
the  bet.    Can  B  collect  the  money? 

21.  A  offers  by  letter  to  sell  a  house  to  B  for  $2,000.  B  replies  by  letter 
that  he  accepts  the  offer  subject  to  the  house  being  put  in  good  repairs.  Is 
there  a  contract  or  not? 

22.  Why  is  it  important  to  avoid  erasures  in  drawing  legal  papers? 


134  OFFICE  TRAINING   AND  STANDARDS 

23.  Why  should  legal  papers  of  all  kinds  be  protected  by  covers? 

24.  "WTiat  is  meant  by  a  power  of  attorney? 

25.  Is  a  power  of  attorney  good  after  the  death  of  the  person  granting  it? 

STANDARD  EXERCISES 

Points  of  law  in  sales  contracts 

1.  Mr.  Brown  says  to  Mr.  Call:  "I  think  I  will  sell  my  car  for  $1,200." 
Mr.  Call  says:   "I  accept  that  offer."    Is  that  a  contract?    Why  or  why  not? 

2.  Mr.  Arens  says  to  Mr.  Burns:  "I  will  pay  you  $100  to  paint  my 
house."  Mr.  Coyl,  who  is  standing  near,  replies:  "I  will  accept  that  offer." 
Is  this  a  contract?    Why  or  why  not? 

3.  Mr.  Doyle  says  to  Mr.  Elm:  "I  will  pay  you  $75  to  paint  my  auto- 
mobile." Mr.  Elm  replies:  "I  will  accept  for  $80."  Is  this  a  contract?  Why 
or  why  not? 

4.  Mr.  Frye  says  to  Mr.  Gill :  "  I  will  take  $200  for  this  white  horse."  The 
next  day  Mr.  Gill  meets  Mr.  Frye  and  says  he  will  accept  the  offer  for  that 
horse.  Mr.  Frye  refuses  to  sell.  Can  Mr.  Gill  enforce  the  sale?  Why  or 
why  not? 

5.  Mr.  Blaire  steps  on  a  street  car  and  rides  three  blocks.  Is  this  a 
contract  and  if  so  how  is  it  enforced? 

6.  A  newspaper  was  sent  regularly  by  mail  to  Mr.  Dale,  who  had  not 
subscribed  but  who  did  not  refuse  to  receive  it  and  did  not  direct  its  discon- 
tinuance.   Must  Mr.  Dale  pay  for  the  paper? 

7.  Mr.  Gale  sent  a  crate  of  strawberries  to  Mr.  Abbott,  who  had  not 
ordered  them,  but  he  received  them  and  used  the  berries.  Can  Mr.  Gale 
collect  the  price  of  the  berries?    Why  or  why  not? 

8.  Mr.  Boyd  without  authority  to  do  so  sends  a  watch  to  Mr.  Cain  and 
writes:  "Give  the  watch  a  10-days'  trial  and  if  you  do  not  return  it  at  that 
time  I  shall  cont^ider  it  sold  for  $25."  Cain  does  not  return  the  watch.  How 
much  can  Mr.  Boyd  collect?    Why  or  why  not? 

9.  Mr.  Crane  offers  a  lot  to  Mr.  Dalton  for  $2,000  and  gives  him  until 
6  o'clock  in  the  afternoon  to  decide.  About  2  o'clock  Mr.  Crane  is  offered 
$2,500  for  the  same  lot  and  sells  it.  Mr.  Dalton  accepts  the  offer  and  sues 
Mr.  Crane  for  breach  of  contract.    Can  he  collect?    Why  or  why  not? 

10.  Mr.  Bamberg  wrote  to  Mr.  Crane  on  May  4,  and  offered  him  $200 
for  a  riding  horse.  Mr.  Crane  answered  on  May  5,  accepting  Mr.  Bamberg's 
offer.  In  the  meantime  Mr.  Bamberg  changed  his  mind  and  wrote  Mr.  Crane 
on  May  5,  withdrawing  his  offer.  The  letters  passed  each  other  in  the  mails. 
Can  Mr.  Bamberg  be  compelled  to  take  the  horse?    Why  or  why  not? 

11.  Mr.  Brown  on  his  twentieth  birthday  purchased  a  $000  piano  as  a 
gift  for  his  sister.  Mr.  Brown  signed  a  written  contract  agreeing  to  pay  for 
the  piano  in  six  months.  Can  the  piano  dealer  collect  if  Mr.  Brown  refuses 
payment?    Why  or  why  not? 

12.  An  iufiuit  borrowed  $40  of  an  adult  with  which  to  purchase  food  and 
clothing.    Can  the  adult  recover  the  borrowed  money?    Why  or  why  not? 


CHAPTER  IX 


HOW  ORDERS  ARE  HANDLED  . 

IN   a  small  business  it  is   often  possible  for    one  person  to 
handle  all  the  office  details  in  connection  with  the  handUng 
of  orders.    But  nearly  all  large  concerns  have  a  separate 
department  which  does  nothing  but  handle  orders. 

Writing  the  order.  Orders  are  usually  written  on  stand- 
ard order  blanks,  which  provide  space  not  only  for  the  goods 
ordered,  but  also  for  the  ether  information  necessary  to  an 
intelligent  handling  of  the  order,  such  as  the  customer's  name 
and  address,  the  terms  on  which  the  goods  were  sold,  when  and 
where  the  order  is  to  be  shipped,  and  any  special  directions  or 
instructions.  The  blank  shown  in  Figure  57  on  page  137  gives 
a  good  idea  of  what  one  company  requires. 

How  orders  are  "registered.'*  When  the  order  reaches  the 
office  it  is  immediately  "registered."  Of  course  each  company 
has  its  own  way  of  registering  its  orders,  but  the  purpose  is 
always  the  same — to  make  an  accurate  record  of  every  order, 
so  that  if  at  any  time  a  question  should  come  up,  the  details 
of  that  order  can  be  found  immediately  by  referring  to  the 
register.     In  one  office  the  following  information  is  registered: 

Date 

Number  of  the  order 

Name  of  customer 

What  is  ordered 

Quantities  ordered 

Amount  of  sale 

Terms 

How  the  order  was  obtained 

Not  only  does  this  give  the  information  about  each  order, 
but  by  simply  totaling  the  column  "amount  of  sale,"  the  total 

135 


136  OFFICE  TRAINING  AND  STANDARDS 

sales  for  any  day  can  be  immediately  obtained.  Under  "how 
the  order  was  obtained,"  there  may  be  two  or  three  columns, 
or  even  more  if  it  is  thought  desirable,  each  column  showing  a 
source  of  sale 

Putting  the  order  through.  But  the  registering  of  the 
order  is  only  a  step.  After  the  order  is  registered  it  must  be 
filled.  Obviously  orders  alone  are  worthless;  they  don't  bring 
any  profit  to  the  firm  until  they  are  filled.  That  is  why  it  is 
so  very  necessary  to  fill  all  orders  as  soon  as  possible  after  they 
are  received. 

Before  orders  can  be  filled,  however,  they  must  be  approved 
by  the  credit  department,  to  make  sure  that  the  customer's 
credit  is  good  for  the  amount  of  the  order,  and  also  to  ascertain 
whether  the  goods  shall  be  shipped  c.  o.  d.  (cash  on  dehvery) 
or  not.  If  a  customer's  credit  is  not  satisfactory,  a  concern 
will  often  ship  goods  c.  o.  d.,  requiring  the  customer  to  pay 
the  transportation  company  for  the  goods  before  he  can  get 
them.  Obviously,  however,  it  would  be  unwise  to  ship  c.  o.  d. 
to  a  customer  whose  credit  was  good,  because  of  the  risk  of 
losing  the  customer's  good-will. 

Analyzing  the  order.  After  the  credit  department  has 
o.  k.'d  the  order,  it  comes  to  the  analysis  clerk,  who  divides  all 
orders  into  three  classes;  those  that 

(1)  can  be  filled  from  stock  on  hand 

(2)  must  be  purchased  from  other  concerns 

(3)  must  be  manufactured 

Of  course  some  orders  might  come  under  all  three  of  these 
classes.  But  almost  any  order  can  be  divided  so  that  it  will 
fall  into  one  of  these  groups,  and  this  dividing  into  groups  is  called 
"analyzing  the  order." 

Why  orders  must  be  analyzed.  Orders  for  goods  in  stock 
can  be  filled  at  once  by  the  stock  room,  while  the  purchasing 
department  has  to  buy  goods  which  must  be  purchased  outside, 
and  those  that  have  to  be  manufactured  must  be  put  tlirough 
the  shop  or  factory.  It  would  be  wasteful  to  send  a  stock  order 
to  the  purchasing  department;  and  there  would  be  no  reason  for 
sending  a  purchase  order  to  the  factory.     In  other  words,  orders 


Sales  order  < 


Orders  delivered  by  receiving  to  entry  department 
Entry  on  order  register 


Entry  of  order 


Distribution 
of  copies 


FoUow-up 
on  orders 


Examined  and  checked  by  interpreter 
Acknowledgment  sent 
Manifold  copies  made  out 
Checked  with  order  register 

(1)  Copy  for  permanent  office  record 

(2)  Copy  to  stock  room  or 

(3)  Copy  for  acknowledgment 

(4)  Copy  to  shipping  room 

(5)  Copy  to  sales  department 

(6)  Copy  for  invoice 

Tickler  file 
Back  ordering 
Suspense  file 


FIGURE  56:     By  studying  this  chart  carefully  you  will  learn  what  happens  to  a 

sales  order  in  the  average  office  from  the  time  it  is  received  and  entered  until  it  is 

filled,  shipped,  billed,  and  finally  disposed  of.     An  invoice  is  shown  below. 


MACDONALD  &  WORTH 
CHICAGO 

Sold  to                                                              Date 

City 
State 

Discminf 

Ship  hy                                                          When                                         .  

Quantity 

Kind 

Description 

List  price 

Totals 

FIGURE  57:     As  many  copies  of  the  sales  order  are  made  as  are  needed  to  be  sent 

to  the  various  departments.     This  copy,  which  is  sent  to  the  customer  as  a  record 

of  the  sale,  is  called  the  invoice;  sometimes  it  is  enclosed  with  the  goods. 

137 


138  OFFICE  TRAINING   AND  STANDARDS 

should  go  only  to  those  departments  which  are  concerned  with 
the  order:  a  purchasing  order  would  go  to  the  purchasing  depart- 
ment; a  stock  order  would  go  to  the  stock  room;  and  a  factory 
order  would  go  to  the  factory. 

We  could  send  the  original  order,  if  there  were  only  one 
kind  of  goods  ordered  on  it;  but  if  there  were  several  kinds, 
then  copies  must  be  made,  one  for  each  department  concerned. 
And  each  copy  must  contain  full  directions  for  handhng  the 
order,  as  well  as  where  to  send  it,  and  how  to  send  it,  whether 
by  freight,  express,  or  parcel  post. 

How  many  copies  must  be  made?  In  addition  to  the 
copies  that  must  go  to  the  departments  which  are  to  make  up 
the  order,  as  we  saw  in  the  preceding  paragraph,  certain  other 
departments  must  also  get  copies.  Some  concerns  do  not  use 
over  three  or  four  copies  of  the  regular  house  order  forms.  The 
original  is  sent  direct  to  the  shipping  department.  Another  is 
filed  alphabetically  in  the  unfilled  order  files  of  the  office.  One 
copy  passes  to  the  accounting  department,  where  it  is  filed 
numerically.  The  fourth  copy  is  filed  in  the  sales  department 
for  the  statistical  record. 

When  the  order  has  been  filled,  the  shipping  department 
returns  its  copy  to  the  order  department  with  the  shipping 
receipt  attached.  The  order  then  passes  to  the  accounting 
department  for  billing,  after  which  the  unfilled  order  is  released 
and  filed  with  the  filled  orders. 

It  is  also  possible,  in  making  out  orders,  to  include  in  the 
same  operation  the  invoice  and  an  acknowledgment  of  the  order. 
Where  orders  must  pass  through  the  factory,  as  many  copies 
are  made  as  will  be  needed  in  the  different  shops.  A\Tien  an 
order  comes  in  for  a  machine  which  is  to  be  shipped  complete, 
this  method  can  be  still  further  expanded. 

With  one  writing,  copies  may  be  made  for  acknowledging 
the  order  to  the  agent  and  to  the  customer,  an  order  to  the 
factory,  a  notice  to  the  traffic  department,  two  notices  to  the 
treasurer,  two  copies  for  the  order  department,  a  notice  to  the 
agent  with  credit  of  commission,  a  notice  to  the  accounting 
department  to  credit  the  agent's  commission,  and  a  ledger 
sheet  for  the  accounting  department. 


THE  ORDER  DEPARTMENT  139 

How  copies  are  made.  When  eight  or  ten  copies  are 
required,  if  these  were  written  by  hand  or  even  on  a  typewriter, 
the  cost  might  be  excessive.  Some  interesting  methods  have 
been  developed  for  making  copies  of  orders.  Of  course  one  of 
the  commonest  is  the  typewritten  carbon  copies,  but  this  may 
be  expensive  if  more  than  three  or  four  copies  are  required. 

One  company  uses  a  simple  method  of  copying  its  orders. 
The  original  order  is  printed  in  copying  ink,  and  the  salesman 
uses  a  copying  pencil  in  making  out  the  order.  After  the  order 
has  been  registered  any  desired  number  of  copies  may  then  be 
made  on  an  ordinary  gelatin  duplicator. 

Another  company  uses  a  raised  type  dupHcator  for  the  pur- 
pose. A  stencil  or  ''plate"  is  stamped  containing  the  desired 
information.  With  this  plate  or  stencil  the  requisite  number 
of  copies  are  printed  at  one  time.  With  this  arrangement,  even 
the  invoice  can  be  made  out  at  the  same  time. 

In  the  next  lesson  we  shall  find  out  what  the  shipping  depart- 
ment does  with  the  orders  it  has  received. 

ORDER  DEPARTMENT  STANDARDS 

The  routine  of  the  order  department 

1.  In  a  small  business  one  person  may  handle  the  orders. 

2.  In  a  large  business  an  entire  department  may  be  required  to  handle 
the  orders. 

3.  Orders  are  usually  written  on  standard  order  blanks. 

4.  Registering  orders  provides  an  accurate  record  for  future  reference. 

5.  The  order  register  shows  the  date,  the  name  of  the  customer,  what  is 
ordered,  the  quantities,  the  amount,  the  terms,  and  the  source. 

6.  The  total  sales  are  obtained  by  totaling  the  "  amount  of  sale"  column. 

7.  The  sales  manager  watches  the  column  headed  "how  the  order  was 
obtained,"  in  order  to  decide  what  steps  to  take  to  increase  sales. 

8.  Since  there  is  no  profit  in  unfilled  orders,  every  order  should  be  filled 
as  soon  as  possible  after  it  is  received. 

9.  The  credit  department  should  approve  all  orders. 

10.  If  a  customer's  credit  is  not  satisfactory,  goods  may  be  shipped  c.o.d. 

11.  An  order  should  not  ordinarily  be  sent  c.o.d.  to  a  customer  whose 
credit  is  good,  lest  he  be  offended,  and  his  good-will  lost. 

12.  Orders  are  divided  into  three  classes:  those  that  can  be  fil'ed  from 
stock  on  hand,  those  that  must  be  purchased  and  those  to  be  manufactured. 

13.  This  division  of  orders  into  classes  is  called  "analyzing  the  orders." 

14.  Orders  should  go  only  to  those  departments  which  are  concerned  with 
the  order;  hence  the  necessity  for  order  analysis. 


140  OFFICE  TRAINING  AND  STANDARDS 

15.  In  addition  <o  the  copy  of  the  order  which  goes  to  the  stock  room, 
the  factory,  or  the  purchasing  department,  one  copy  goes  to  each  of  the  fol- 
lowing departments:  shipping,  accounting,  sales;  and  also  to  the  unfilled  order 
files. 

ORDER  DEPARTMENT  STANDARDS 

Following  an  order  through  a  factory,  office 

1.  The  order  comes  in  by  mail  and  is  opened  in  the  mail-opening  de- 
partment. 

2.  It  is  sent  to  the  order  department,  where  it  is  recorded  and  given  an 
order  number. 

3.  It  is  sent  to  the  credit  department  for  o.  k 

4.  It  is  duplicated,  and  duplicate  orders  are  sent  to  each  department 
which  is  to  furnish  a  part  of  the  material. 

5.  It  is  billed  in  the  accounting  department. 

6.  The  production  department  has  the  order  with  the  date  on  which 
the  shipment  is  to  be  made. 

7.  The  planning  department  makes  out  instructions  for  filling  the  order, 
with  the  time  for  completion.   The  order  is  scheduled. 

8.  Requisitions  for  material  are  sent  to  the  store  room. 

9.  The  foreman  has  the  order.     The  material  f r<  m  the  store  room  is 
gathered,  assembled,  inspected,  finished,  and  sent  to  the  shipping  department. 

10.  The  shipping  department  has  the  order. 

11.  If  the  order  is  shipped  by  freight,  the  bill  of  lading  is  obtained. 

12.  If  it  is  shipped  by  express,  a  receipt  is  obtained. 

13.  If  it  is  shipped  by  mail,  postage  is  paid  and  a  receipt  is  obtained  if 
it  is  registered  or  insured. 

14.  The  accounting  department  is  notified  of  the  shipment  of  the  order. 

15.  The  accounting  department  sends  the  bill  to  the  customer. 

16.  The  money  is  paid,  or 

17.  The  accounting  department  sends  the  bill  to  the  collection  manager. 

STANDARD  QUESTIONS 

The  routine  of  the  order  department 

1.  How  are  orders  usually  written,  and  why? 

2.  What  information  is  given  on  an  order  blank? 

3.  What  is  the  first  step  in  handling  orders? 

4.  What  information  is  recorded  in  the  order  register? 

5.  What  does  the  order  register  show  the  sales  manager? 

6.  What  happens  to  an  order  after  it  is  registered? 

7.  What  is  meant  by  analyzing  an  order? 

8.  How  is  an  order  analyzed? 

9.  What  departnients  should  receive  copies  of  orders? 

10.  How  are  orders  copied? 


CHAPTER  X 

WHAT  YOU  OUGHT  TO  KNOW 
ABOUT  SHIPPING 

A  LL  the  time  and  care  that  may  have  been  expended  in 
/\  getting  a  customer  may  easily  be  lost  in  the  shipping 
department.  Probably  more  complaints  arise  from  the 
careless  handling  of  merchandise  in  transit  than  from  any  other 
cause,  leaving  out  of  consideration,  of  course,  the  question  of 
quality.  The  shipping  department  is  therefore  an  important 
link  in  the  chain  that  holds  the  customer  to  the  company. 

The  duties  of  this  department.  Not  only  must  the  ship- 
ping department  watch  proper  packing  and  routing,  to  help  make 
sure  that  the  quantities  are  correct,  and  that  the  order  should 
reach  the  customer  in  good  condition  and  in  a  reasonable  time 
but  also  it  must  notify  the  office  when  goods  are  shipped. 
Although  the  reasons  for  this  seem  obvious,  yet  undoubtedly 
many  concerns  are  today  losing  money  because  their  shipping 
departments  are  sending  out  orders  for  which  the  customer 
never  pays,  simply  because  no  records  are  made  of  the  ship- 
ments. Another  reason  for  notifying  the  office  that  shipment 
has  been  made  is  so  that  inventories  may  be  reduced  accordingly 
and  thus  be  kept  accurate. 

Let  us  then  take  up  the  duties  of  the  shipping  department. 

How  orders  are  shipped.  Nothing  should  be  shipped  with- 
out proper  authority,  which  is  usually  a  copy  of  the  original 
order.  For  goods  which  are  in  stock  some  concerns  make  out 
the  labels  in  the  order  department,  and  send  only  the  label  to 
the  shipping  department.  This  label  has  two  parts;  the  left- 
hand  part  is  the  label,  and  the  right-hand  part  is  the  order. 
It  is  sent  to  the  shipping  room  in  duplicate.  The  label  is 
pasted  on  the  outside  of  the  package. 

141 


142  OFFICE  TRAINING  AND  STANDARDS 

The  duplicate  is  a  receipt,  to  be  signed  by  the  transporta- 
tion company  to  whom  the  package  is  delivered.  This  dupli- 
cate is  returned  to  the  office  and  is  not  only  a  notice  that  the 
shipment  has  been  made,  but  it  also  shows  who  received  the 
shipment,  and  what  the  carriage  charges  are — a  mighty  valu- 
able record  in  the  event  of  loss  or  damage. 

What  proper  packing  can  do.  Proper  packing  is  an  im- 
portant duty  of  the  shipping  department.  It  is  often  possible 
to  save  not  only  a  great  deal  of  unnecessary  breakage  in  ship- 
ment, sometimes  resulting  in  customers'  returning  goods,  but 
also  unnecessarily  high  freight  charges,  if  the  best  method  of 
packing  is  adopted.  Usually  this  comes  under  the  authority 
of  the  shipping  clerk,  although  where  large  quantities  of  material 
are  shipped,  there  is  sometimes  a  special  packing  department 
which  may  or  may  not  be  under  the  supervision  of  the  shipping 
clerk.  In  some  concerns  the  method  of  packing  is  standardized 
for  each  product  the  company  handles. 

In  the  smaller  concerns  the  shipping  clerk  decides  by  what 
route  and  by  what  method  of  transportation  the  shipment  will 
go.  In  the  larger  concerns,  however,  this  ordinarily  is  handled 
by  the  traffic  department,  which  works  with  the  shipping  room 
and  sees  to  it  that  it  has  on  all  orders  definite  instructions  as 
to  whether  shipments  should  go  out  by  messenger,  parcel  post, 
express,  or  freight,  and  by  which  route. 

Handling  freight  shipments.  If  a  shipment  is  to  be  made  by 
freight,  a  bill  of  lading  is  made  out.  This  bill  of  lading  is  really 
only  a  contract  between  the  shipper  and  the  transportation 
company,  in  which  the  transportation  company  agrees  to  con- 
vey the  goods  described,  subject  to  certain  rules  and  conditions. 

The  bill  of  lading  also  serves  as  a  receipt  for  the  shipment; 
it  is  made  out  in  tripUcate,  the  original  usually  being  sent  to 
the  customer,  as  notice  that  the  goods  have  been  shipped,  and 
as  his  authority  to  get  the  goods  from  the  transportation  com- 
pany; one  of  the  copies  is  retained  by  the  freight  agent,  and 
the  other  is  filed  by  the  shipper. 

Making  express  shipments.  If  a  shipment  is  to  be  made 
by  express,  an  express  receipt  is  made  out,  describing  the  goods 
shipped,    and    signed    by    the   express   driver.     Often    express 


THE  SHIPPING  DEPARTMENT  143 

receipts  are  bound  in  books  and  kept  in  the  shipping  room  for 
reference,  if  occasion  should  arise. 

What  it  costs  to  ship.  The  transportation  companies  fur- 
nish shippers  with  tariffs  giving  the  rates  from  the  shipping 
point  to  all  other  points  in  the  country  on  different  classes  of 
merchandise.  These  tariffs  are  filed  alphabetically  by  the 
names  of  the  companies  issuing  them.  The  most  approved 
file  now  in  use  by  the  transportation  companies  and  large  ship- 
pers is  arranged  so  as  to  bring  all  the  tariffs  into  view,  keep 
them  in  good  condition,  and  permit  the  alphabetical  fiUng  of 
folders,  with  papers  of  different  sizes. 

In  addition  to  the  tariff  files  it  is  customary  to  keep  a  file 
of  rate  cards  showing  the  express,  freight,  and  parcel  post  rates 
to  different  localities.  These  are  filed  by  states,  the  towns 
being  arranged  alphabetically  under  each  state. 

Tracers  and  claims.  In  case  goods  are  delayed,  damaged 
or  lost,  the  traffic  department  sends  out  tracers  or  presents 
claims  for  damages.  A  card  index  covering  claims  against  the 
transportation  companies  is  maintained.  A  card  for  each  tracer 
and  each  claim  is  filed  alphabetically  under  the  consignee's 
name.  Each  card  bears  the  same  number  as  the  original  order. 
Correspondence  about  the  claim  is  also  filed  under  that  number. 

The  transportation  companies  are  sometimes  slow  about 
settling  claims  and  unless  they  are  followed  up  the  claims  may  be 
sidetracked.  The  correspondence  may  be  filed  chronologically 
with  information  as  to  its  location  on  the  card,  or  adjustable 
signals  may  be  used  on  the  card  to  show  the  date  when  the 
claim  is  next  to  come  up  for  attention. 

SHIPPING  STANDARDS 

The  functions  of  the  shipping  department 

1.  The  purpose  of  the  shipping  department  is  to  check,  pack,  route  and 
deliver  shipments  to  the  transportation  company. 

2.  This  department  is  important  because  it  is  the  last  place  an  order  stops 
before  it  goes  to  the  customer. 

3.  The  shipping  department  is,  therefore,  often  responsible  for  the  satis- 
faction or  dissatisfaction  of  the  firm's  customers. 

4.  To  insure  that  the  right  quantities  are  delivered,  the  shipment  is  checked 
against  a  copy  of  the  order. 


144  OFFICE  TRAINING   AND  STANDARDS 

5.  The  method  of  packing  shipments  is  determined  by  the  character  of 
the  goods  shipped,  the  mode  of  transportation,  the  distance  to  be  traveled, 
and  the  legal  or  other  requirements. 

6.  A  stove  handle  might  be  safely  shipped  if  wrapped  in  a  piece  of  burlap. 

7.  An  expensive  cut  glass  dish  might  require  a  substantial  container  built 
for  the  purpose,  and  carefully  stuffed  with  excelsior. 

8.  Packages  containing  breakable  articles  should  be  marked  "glass"  or 
"handle  with  care." 

9.  Packages  containing  fruits  or  flowers  should  be  marked  "perishable." 

10.  The  person  making  a  shipment  is  called  the  shipper  or  consignor. 

11.  The  person  to  whom  the  shipment  is  addressed  is  called  the  consignee. 

12.  The  transportation  company  is  called  the  carrier. 

13.  All  packages  should  be  plainly  marked  with  the  names  and  addresses 
of  both  the  consignee  and  the  consignor,  as  well  as  the  name  of  the  carrier. 

14.  In  many  offices,  the  label  is  made  out  in  the  order  department,  to 
insure  the  correct  address. 

15.  In  some  concerns,  the  shipping  clerk  decides  the  route  by  which  ship- 
ments shall  be  made. 

16.  In  very  large  concerns,  a  traffic  department  determines  the  routing  of 
shipments. 

SHIPPING  STANDARDS 

Parcel  post,  express,  and  freight  shipments 

1.  Express  shipments  are  much  faster  than  freight,  and  often  faster  than 
parcel  post  mail. 

2.  Freight  is  probably  the  slowest  method  of  shipping,  and  also  the  least 
expensive. 

3.  First-class  mail  is  probably  the  quickest  method  of  shipping,  and  also 
the  most  expensive. 

4.  Parcel  post,  express,  or  freight  shipments,  may  be  sent  c.  o.  d. 

5.  Packages  sent  by  parcel  post  must  not  be  sealed  and  must  be  wrapped 
so  as  to  make  possible  inspection  of  the  package. 

6.  Parcel  post  packages  must  not  contain  any  written  matter;  WTiting 
would  subject  the  whole  parcel  to  first-class  postage,  as  would  also  sealing. 

7.  Express  shipments  may  be  sealed  and  may  contain  writing,  but  not 
letters  nor  messages,  unless  they  are  old. 

8.  Shipments  weighing  over  100  pounds  are  usually  sent  by  freight,  be- 
cause it  is  less  expensive. 

9.  Package  s  weighing  from  1  to  50  pounds  may  be  sent  by  parcel  post, 
provided  the  combined  length  and  girth  is  not  over  84  inches. 

10.  Package.5  costing  less  than  10  to  20  cents  to  send  are  usually  shipped 
cheaper  by  mail. 

11.  Packages  costing  over  20  cents  to  send  may  often  be  sent  cheapest  by 
express. 

12.  The  postoflBce  will  deliver  parcel  post  packages,  but  it  will  not  call 
for  them. 


THE  SHIPPING  DEPARTMENT  145 

13.  Freight  shipments  must  be  delivered  and  called  for  at  the  freight 
house. 

14.  The  express  company  will  call  for  packages  and  will  deliver  them. 

15.  Therefore,  if  the  local  delivery  charges  are  high,  it  might  pay  to  send 
by  express. 

16.  It  might  also  pay  to  send  by  express  if  quick  delivery  is  desired. 

17.  Sometimes  whole  carloads  of  materials  are  shipped  by  express  when 
quick  delivery  is  required. 

18.  Parcel  post  charges  must  be  prepaid. 

19.  Express  and  freight  shipments  do  not  have  to  be  prepaid,  but  may  be 
sent  charges  collect. 

20.  The  postoffice  does  not  give  a  receipt  for  mail  matter  uriless  registered 
or  insured. 

21.  Express  and  freight  shipments  are  receipted  for  by  the  carriers. 

22.  A  bill  of  lading  is  made  out  in  triplicate  for  freight  shipments. 

23.  The  original  bill  of  lading  is  signed  by  the  freight  agent,  and  is  usually 
sent  by  the  consignor  to  the  consignee,  entitling  him  to  claim  the  shipment. 

24.  The  duplicate  bill  of  lading  is  signed  by  the  consignor  and  kept  by 
the  carrier. 

25.  The  triplicate  may  be  kept  by  the  consignor  as  a  memorandum  of  the 
shipment. 

26.  The  original  bill  of  lading  is  negotiable  and  may  be  sold  or  transferred 
as  often  as  desired. 

27.  When  the  consignee  receives  his  shipment  from  the  freight  house,  he 
signs  a  receipt  showing  that  he  has  received  his  goods,  and  he  receives  a  receipted 
bill  showing  the  amount  of  the  freight  charges. 

28.  When  goods  are  shipped  to  a  foreign  country,  the  consignor  makes 
out  a  manifest  sho^ving  the  value  of  the  goods  for  the  benefit  of  the  custom- 
house officers. 

SHIPPING  STANDARDS 

How  to  ship  by  express 
The  following  suggestions  on  express  shipments  are  adapted  from  a  folder 
published  by  the  Adams  Express  Company: 

1.  Poorly  packed  shipments  mean  dissatisfied  customers,  and  prompt 
claim  adjustments,  at  best,  merely  conciliate,  but  rarely  satisfy. 

2.  Express  shipments  should  be  so  packed  as  to  withstand  reasonably 
quick  handling,  and  successful  shippers  consider  careful  packing  a  duty  to  their 
customers. 

3.  The  money  saved  by  inadequate  packing  rarely  equals  the  profits  lost 
through  dissatisfied  customers. 

4.  Pack  glass  and  fragile  articles  in  wooden  boxes  or  strong  corrugated 
paper  cartons,  using  plenty  of  excelsior  or  similar  packing,  and  mark  the  word 
"glass"  on  the  outside  of  the  container. 

5.  Obliterate  old  marks  on  boxes  or  wrappings— they  frequently  send 
packages  astray. 


146  OFFICE  TRAINING  AND  STANDARDS 

6.  Heavy  packages  of  merchandise  should  not  be  wrapped  in  a  single 
thickness  of  thin  paper  and  tied  with  a  light  string,  because  the  most  careful 
handling  cannot  then  prevent  delivery  in  a  torn  and  damaged  condition,  a 
common  cause  of  complaint. 

7.  Put  your  name  and  address  on  the  outside  of  the  package  under  the 
word  "from."  Put  your  name  and  address  and  the  name  and  address  of  the 
consignee  inside  the  package  as  well  as  on  the  outside.  Then,  if  the  outside 
mark  is  lost  or  destroyed,  this  will  help  to  prevent  delay  in  delivery. 

8.  Do  not  use  tags  if  the  condition  of  the  package  will  permit  marking 
with  ink. 

9.  Castings  and  similar  heavy  shipments  should  be  marked  with  two  or 
more  strong  tags  attached  by  wire. 

10.  Raw  furs  or  skins,  if  in  hand-made  bales,  should  be  securely  stitched  in 
burlap  or  bag,  and  marked  on  a  smooth  wooden  strip  sewed  flat  to  the  bale. 
The  oil  in  the  skms  will  destroy  any  ordinary  marking. 

11.  Always  use  the  correct  street  and  number  for  shipments  going  to 
large  cities. 

12.  Because  of  similar  town  names,  the  county  should  also  be  shown  on  all 
shipments.  Abbreviations  are  misleading — spell  out  the  names  of  states 
as  well  as  names  of  cities  and  towns. 

13.  Send  money  and  jewelry  in  sealed  packages  through  the  money  de- 
partment of  the  express  company,  and  never  in  unsealed  packages. 

14.  If  the  express  charges  are  prepaid,  mark  the  shipment  plainly  "pre- 
paid." If  the  package  is  marked  with  a  tag  and  the  address  is  also  written  in 
other  places  on  the  package  or  on  more  than  one  side  of  the  package,  write 
the  word  "prepaid"  wherever  the  address  appears.  This  will  prevent  collect- 
ing charges  twice. 

15.  If  a  shipment  is  sent  c.  o.  d.,  mark  the  package  plainly  c.  o.  d.,  and  the 
amount.  Unless  specific  instructions  to  the  contrary  are  given  by  the  shipper, 
the  charge  for  collecting  and  remitting  the  money  will  be  collected  from  the 
consignee.  The  shipper's  name  and  address  must  be  plainly  shown  on  a  c.  o.  d. 
shipment. 

16.  Canada  Business— If  a  shipment  is  destined  to  Canada,  the  owner's  or 
agent's  manifest,  in  the  form  ordered  by  the  United  States  Department  of 
Commerce  and  Labor,  must  be  filled  out  and  forwarded  with  the  shipment. 
Duplicate  invoices  in  the  form  ordered  by  the  Canadian  Minister  of  Customs 
must  also  be  furnished  by  the  shipper.  Mark  the  value  on  the  outside  of  all 
shipments  to  Canada. 

SHIPPING  STANDARDS 

Points  of  law 

1.  Receipts  should  always  be  preserved  for  a  reasonable  length  of  time, 
as  they  may  be  needed  in  case  of  dispute,  loss  or  accident. 

2.  Common  carriers  arc  always  held  responsible  for  the  loss  of  packages 
caused  by  carelessness  of  their  agents. 


THE   SHIPPING  DEPARTMENT  147 

3.  Parcel  post  is  carried  by  the  government  but  its  delivery  is  not  guar- 
anteed, nor  will  losses  be  made  good,  unless  the  parcel  is  insured.  The  govern- 
ment is  not  a  common  carrier. 

4.  If  goods  are  lost  or  stolen  or  burned  in  transit,  the  carrier  is  the  lo;  er. 

5.  If  the  loss  is  caused  by  "an  act  of  God  or  a  public  enemy,"  the  shipper 
would  be  the  loser. 

6.  Losses  caused  by  lightning,  floods,  or  cyclones,  would,  therefore,  be  at 
the  expense  of  the  shipper. 

7.  A  loss  by  fire  would  be  at  the  expense  of  the  carrier,  because  it  could 
be  prevented;  but  a  loss  by  fire  caused  by  lightning  would  be  "an  act  of  God." 

8.  The  delivery  of  goods  may  be  stopped  if  the  consignee  becomes  in- 
solvent while  the  goods  are  in  transit. 

9.  If,  however,  the  consignee  has  received  the  bill  of  lading  and  trans- 
ferred it,  the  buyer  has  a  good  title,  and  the  goods  cannot  be  claimed  by  the 
consignor. 

10.    A  common  carrier  is  not  allowed  by  the  government  to  discriminate 
against  any  person  by  allowing  rebates  or  different  freight  rates. 

STANDARD  QUESTIONS 

The  functions  of  the  shipping  department 

1.  What  is  the  purpose  of  the  shipping  department? 

2.  Why  is  this  department  important? 

3.  What  connection  exists  between  the  work  of  the  shipping  department 
and  the  possible  satisfaction  or  dissatisfaction  of  customers? 

4.  How  are  shipments  checked  for  quantities? 

5.  What  four  factors  determine  how  goods  shall  be  packed  for  shipment? 

6.  Would  you  wrap  a  china  dish  the  same  way  as  a  baseball  bat? 

7.  How  should  packages  containing  breakable  articles  be  marked? 

8.  How  should  shipments  of  fruits  or  flowers  be  marked?    Why? 

9.  Who  is  the  consignor? 

10.  Who  is  the  consignee? 

11.  Who  is  the  carrier? 

12.  Is  the  postofEce  a  carrier?    Why  or  why  not? 

13.  What  instructions  would  you  give  about  addressing  a  package  in- 
tended for  express  shipment? 

14.  Who  decides  by  what  route  shipments  are  made? 

15.  What  are  the  duties  of  the  traffic  department? 

STANDARD  QUESTIONS 

Parcel  post,  express  and  freight  shipments 

1.  What  is  the  fastest  way  to  ship  goods? 

2.  What  is  the  cheapest  way  to  ship?    Why? 

3.  What  is  the  most  expensive  way  to  ship?     Why? 

4.  How  would  you  route  a  shipment  you  wanted  to  send  c.  o.  d.? 


148  OFFICE  TRAINING   AND  STANDARDS 

5.  Can  you  name  some  of  the  restrictions  upon  parcel  post  shipments? 

6.  Can  express  shipments  be  sealed?    And  contain  writing? 

7.  How  are  heavy  packages  best  shipped?    Why? 

8.  What  kind  of  packages  may  be  sent  by  parcel  post? 

9.  When  would  you  ship  by  parcel  post?  by  express?  by  freight? 

10.  What  are  the  relative  advantages  and  disadvantages  of  mail,  express, 
and  freight  shipments  with  respect  to  delivery?  cost?  speed?  payment  of 
the  charges?    receipt  for  shipments? 

11.  Under  what  conditions  is  express  shipment  preferred? 

12.  Are  large  quantities  of  materials  ever  shipped  any  way  except  by 
freight?  If  so,  why? 

13.  How  should  a  package  containing  written  instructions  be  shipped? 

14.  How  should  a  package  be  sent  if  the  purchaser  is  to  pay  charges? 

15.  How  should  a  small  package  on  which  you  do  not  care  for  insurance 
be  sent? 

16.  What  is  a  bill  of  lading? 

17.  Is  the  bill  of  lading  negotiable? 

18.  How  many  copies  are  usually  made? 

19.  Why  should  the  carrier's  agent  sign  the  original  bill  of  lading? 

20.  Why  should  the  consignor  sign  the  duplicate  bill  of  lading? 

21.  What  becomes  of  the  three  copies  of  the  bill  of  lading? 

22.  What  is  the  freight  bill? 

23.  Why  should  the  carrier's  agent  sign  one  copy  of  the  freight  bill? 

24.  Why  should  the  consignee  sign  the  other  copy  of  the  freight  bill? 

25.  What  steps  must  be  taken  when  shipping  goods  to  Canada? 

STANDARD  QUESTIONS 

Points  of  law  in  shipping 

1.  Should  receipts  be  kept?    Why? 

2.  Are  carriers  responsible  for  the  loss  of  goods  in  transit? 

3.  Is  parcel  post  a  safe  way  to  ship?    Why  or  why  not? 

4.  When  are  carriers  responsible  for  the  loss  of  shipments? 

5.  When  are  shippers  responsible  for  the  loss  of  shipments? 

6.  WTiat  is  meant  by  "an  act  of  God"? 

7.  What  action  can  the  shipper  take  if  he  learns  his  customer  has  become 
insolvent  before  the  goods  have  arrived? 

8.  Suppose  the  consignee  has  received  the  bill  of  lading,  and  transferred 
it,  what  can  the  shipper  do  then? 

9.  Can  you  get  different  freight  rates  for  the  same  class  of  service? 
10.    Can  you  get  lower  express  rates  than  your  competitor? 


CHAPTER  XI 

THE  ACCOUNTING  DEPARTMENT 

IN  the  accounting  department  we  find  one  of  the  most  inter- 
esting and  important  departments  in  the  business.  For 
it  is  in  this  department  that  records  are  kept  telHng  how 
much  money  is  received  and  paid  out,  and  for  what,  who  owes 
the  company  as  well  as  whom  the  company  owes,  how  much 
business  the  company  is  doing  this  year  compared  with  last, 
this  month  compared  with  last  month,  and  so  on. 

What  this  department  does.  The  first  task  of  the 
accounting  department  then  is  to  keep  certain  records;  and 
the  second  is  to  prepare  reports  for  the  manager,  so  arranged 
that  they  will  show  at  a  glance  if  the  business  is  progressing  or 
going  backwards,  if  one  department  is  doing  especially  well  or 
poorly,  and  just  what  the  profits  or  losses  are.  In  this  way 
the  manager  can  pick  out  the  weak  spots  and  take  steps  to 
strengthen  them  at  once.  It  is  easy  to  see,  therefore,  how  neces- 
sary it  is  for  the  work  of  this  department  to  be  absolutely  accu- 
rate as  well  as  timely. 

The  difference  between  bookkeeping  and  accounting. 

The  first  duty,  keeping  the  records,  is  what  we  usually  call 
bookkeeping — when  we  speak  of  accounting  we  mean  both 
keeping  the  records  and  interpreting  them. 

Why  the  ledger  is  important.  Perhaps  the  most  impor- 
tant book  which  is  used  in  keeping  the  records  is  the  ledger,  a 
page  of  which  is  shown  in  Figure  60.  Probably  every  transac- 
tion that  the  company  engages  in  will  find  a  place  in  the  ledger 
sooner  or  later,  since  it  is  from  the  figures  in  the  ledger  that 
reports  are  made  showing  the  condition  of  the  business.  To 
make  sure  that  these  figures  are  correct,  there  must  be  some 
means  of  checking  up  their  accuracy. 

149 


150  OFFICE  TRAINING   AND  STANDARDS 

The  essentials  of  double- entry  bookkeeping.  The 
double-entry  system  of  bookkeeping  which,  with  its  many  adap- 
tations, is  used  almost  universally  at  this  time,  provides  this 
means.  The  name  "double  entry"  comes  from  the  fact  that 
for  every  transaction  two  records  are  made  in  the  ledger;  that 
is,  for  every  charge  there  is  a  credit,  and  for  every  credit  there 
is  a  charge.  This  is  clearly  logical,  because  for  every  business 
transaction  there  are  in  reality  two  operations. 

Suppose,  for  instance,  that  Henry  Miller  pays  you  $80  on 
account.  As  a  matter  of  fact,  he  pays  the  $80,  and  you  receive 
it.  Both  operations  should  be  recorded;  Henry  Miller  should 
be  credited  with  $80,  and  you  should  be  charged  with  it.  In 
the  same  way,  if  he  buys  from  you  $9  worth  of  goods  on  account, 
he  is  charged  with  that  $9  and  your  merchandise  or  stock  account 
is  credited  with  it. 

In  the  ledger  there  is  a  separate  page  for  every  account. 
There  will  be  one  page  headed  "Henry  Miller,"  for  instance; 
another  "Irving  Smith."  Eveiy thing  purchased  by  either  of 
these  men  will  be  entered  on  the  left  or  debit  side;  any  goods 
which  they  return  or  any  money  which  they  pay,  on  the  right 
or  credit  side.  Besides  accounts  with  people  or  concerns  there 
are  other  accounts,  headed  "merchandise,"  "cash,"  "interest," 
"expense,^'  "notes  payable,"  and  so  forth. 

Taking  a  trial  balance.  From  the  very  fact  that  every 
item  which  is  charged  to  one  account  is  credited  to  another,  it 
is  clear  that  if  the  entries  are  correct,  the  books  will  balance. 
That  is,  the  sum  of  the  debit  entries  will  equal  the  sum  of  the 
credit  entries.  At  the  end  of  each  month,  all  the  credit  balances 
are  listed  in  one  column  and  all  the  debit  balances  are  listed  in 
another;  if  the  totals  of  the  two  columns  are  equal,  it  usually 
proves  that  the  bookkeeping  has  been  correctly  done.  This  is 
called  "taking  a  trial  balance." 

After  the  trial  balance  is  "taken,"  it  is  a  comparatively  simple 
matter  to  prepare  statements  for  the  manager.  One  of  the 
most  important  of  these  summarized  statements  is  the  balance 
sheet,  or  some  form  of  it.  The  balance  sheet  gives  a  complete 
statement  of  the  condition  of  the  business  at  any  stated  time. 
On  page  15G  is  shown  the  balance  sheet  of  a  corporation. 


Purchase 
accounts 


Auditing  or  vouchering  invoices 

Entry  and  distribution 
Entering  on  I 
voucher         <  Balancing 

I  Posting  totals  to  general  ledger 


register 


Payments 


By  check 


Petty  cash 
Payroll 


Check  drawn 
from  voucher 
Entry  on  check  record 

Entry  on 
voucher  register 

Entry  on  cash  book 

Total  distribution 
posted  to  general 
ledger 


The  work  of 

the  accounting 

department 


Credit 


Safes     J 
accounts 


Financial 
entries 


Copy  of  sales  order  checked  with  shipment 
comes  to  accounting  department 

Bill  made  out  and  mailed 

Register  of  invoices  rendered 

Entry  made  from  carbon  of  bill  to 
customer's   ledger 

Totals  posted  to  general  ledger 


Amount  entered  on  letter 

Amounts  listed  and  made'  up  on  deposit  slip 

Total  entered  in  cash  book 

Credits  posted  to  customer's  ledger 

Totals  posted  to  general  ledger 


Capital  stock 

Correction  of  accounts 

Capital  entries-dividends 

Relating  to  stock  and  merchandise 

Accounts  payable  and  receivable 


Cash 


FIGURE  58:  Studying  this  chart  will  make  it  very  much  simpler  for  you  to  learn 
quickly  just  what  work  is  done  in  the  accounting  department,  and  how  purchase 
accounts,  sales  accounts,  and  financial  entries  are  handled.  A  good  way  to  test 
your  knowledge  is  to  copy  the  chart,  and  then  try  to  reproduce  it  from   memory. 

151 


Journal 

Dr.                       Cr. 

%^.n 

f^£^tfj.     (^^^^ttLta^ 

/ 

0  o  o  oo 

f^ 

Jo    ~>io^   /gcx^xZc^a,^^ 

^oo  oo 

C^^L^aJ^ 

9.00  oo 

-      Dr 

Cash  Book 

Dr. 

1918 

Items 

Sundries 

Accounts 
Receivable 

~    (l^.  II  • 

/   llcJlouyyyc  JL,  ^a^AAJ-CA^ 

7a.zo.S% 

Soj.x^f 

-  (IT  J 

\^»^ti^«j  /t2c^cx-cx/-<x-'U--Ce^ 

3uOO.   00 

-       n      >i 

q.£.    :^Ci.ry^.rr^.^mJ.Co.    7^ 

i;i^>s-3 

~    "    /Sb 

fe  :N.  -Lu^jLl^o^ 

16.  ^8 

- 

-==^- 

■^~ r : TT-: 

n  iJ — lL 

1  1  1  1 — u± 

^ 

L- 

_ 

FIGURE  59:     Only  the  debit  or  left-hand  page  of  the  cash  book  appears  here. 

In  the  journal,  debit  and  credit  entries  are  made  on  the  same  page.     According  to 

the  journal  real  estate  was  sold  for  $1,000,  since  real  estate  is  credited. 


J.  C.  Hammond  Co. 

Date 

Debit 

v/ 

Amount 

Date 

Credit 

V 

Amount 

9— 

r 

^K-<?C<L£^. 

1 

CO  — 

(U. 

II 

&U- 

7  2,fS 

i 

(T 

- 

J 

FIGURE  60:      In  Figure  59,  cash  is  debited  with  $72.53  paid  by  J.  C.  Hammond 

Company  on  account.     Here  is  the  ledger  account  showing  a  credit  entry  of  $72.53 

and  a  debt  entry  of  $100.     They  still  owe  the  difference,  $27.47. 

152 


THE  ACCOUNTING  DEPARTMENT  153 

The  definition  of  '  'posting."  Some  firms  do  not  enter 
their  records  directly  in  the  ledger,  but  transfer  the  items  from 
original  books  of  entry,  such  as  the  journal,  the  cash  book,  the 
purchase  book,  and  the  sales  book.  This  transfer  of  items  to 
the  ledger  is  called  "posting." 

The  journal  often  serves  the  purpose  of  a  diary.  In  it  day 
by  day  transactions  are  lined  up  one  after  another  in  the 
order  in  which  they  occur. 

In  the  cash  book  is  entered  an  account  of  all  money  which 
comes  in  or  goes  out.  On  the  debit  side  of  this  book  are  entered 
all  amounts  received ;  on  the  credit  side  all  amounts  paid  out. 

In  the  purchase  book  are  entered  all  purchases  made  from 
outside  concerns;  in  the  sales  book  all  sales  made  to  outside 
individuals  or  concerns. 

The  special  nature  of  a  business  may  require  other  books; 
but  these  five — the  ledger,  the  journal,  the  cash  book,  the  pur- 
chase book,  and  the  sales  book — are  the  fundamental  ones  on 
which  almost  all  other  books  or  records  are  based. 

Credit  and  collection  records.  Besides  keeping  the  rec- 
ords which  we  have  already  discussed,  another  task  often  han- 
dled by  the  accounting  department  is  that  of  keeping  credit 
and  collection  records.  Almost  all  business  operates  to  a  cer- 
tain extent  on  a  credit  basis.  This  makes  it  necessary,  of  course, 
to  know  whether  customers  are  trustworthy  before  selling  them 
goods  on  credit,  and  all  sorts  of  information  has  to  be  collected 
about  customers  or  prospective  customers  from  every  con- 
ceivable source — from  salesmen,  from  banks,  from  credit  report- 
ing agencies,  and  many  others. 

Some  firms  make  out  a  card  for  each  customer  which  gives 
the  name,  address,  rating,  ledger  account  number,  and  other 
useful  information.  Others  simply  place  the  credit  rating  at 
the  top  of  the  ledger  account.  One  method  is  to  place  all  the 
information  concerning  one  firm  in  a  folder  and  file  it  numerically. 

Collection  records  are  closely  connected,  of  course,  with 
credit  records.  Before  granting  more  credit  to  a  customer  it  is 
necessary  to  know  if  he  has  paid  his  previous  bills  promptly. 
For  this  reason  collection  records  are  usually  placed  under  the 
same  control  as  credit  records. 


154  OFFICE  TRAINING  AND  STANDARDS 

As  soon  as  a  ledger  account  is  opened  it  is  necessary  to  adopt 
some  systematic  method  of  keeping  after  the  customer  until 
the  bill  is  paid.  For  this  purpose  it  is  customary  to  use  a  special 
collection  card  containing  all  the  available  information  on  the 
case.  The  record  is  handled  just  hke  a  follow-up  method.  By 
the  use  of  signals  on  the  card,  attention  may  be  called  to  the 
account  whenever  any  action  is  desired. 

The  usual  way  is  to  send  out  a  statement,  followed  if  neces- 
sary by  overdue  notices  or  a  sight  draft,  which  is  an  order  upon 
the  debtor  for  the  amount  due.  If  these  steps  bring  no  results, 
form  letters  or  special  letters  are  sent  before  placing  the  account 
in  the  hands  of  an  attorney  for  collection. 

When  to  send  statements.  The  right  kind  of  statements 
mailed  when  due  will  do  much  toward  keeping  a  credit  business 
on  a  healthy  basis.  If  statements  are  sent  out  at  the  end  of 
the  month,  every  effort  should  be  made  to  see  that  they  are 
mailed  so  as  to  reach  the  customer  promptly  on  the  first  of  the 
month.  Laxness  in  sending  bills,  statements,  and  in  following 
up  collections  only  encourages  the  slow  paying  customer.  When 
a  customer  knows  that  if  he  does  not  pay  promptly,  he  may 
lose  his  credit  standing,  he  is  more  Hkely  to  send  the  money 
when  it  is  due  than  if  he  knows  he  can  hold  back  indefinitely. 

When  an  itemized  statement  is  not  required,  the  simplest 
plan  is  to  give  the  dates  and  purchases  with  credits  and  amount 
due.  Some  firms  send  such  a  statement  and  attach  carbon 
copies  of  each  sales  slip  where  itemized  copies  are  desired. 

Another  plan  which  may  be  used  is  the  daily-posting  balance 
statement  and  balance  ledger.  Such  statements  may  be  mailed 
as  often  as  necessary  or  without  any  loss  of  time  at  the  close  of 
the  month.  Banks  particularly  use  a  modification  of  a  daily 
posting  system. 

Making  up  the  payroll.  Another  regular  task  of  the 
accounting  department  is  "making  up"  the  payroll.  Since  one 
of  the  largest  costs  in  nearly  every  business  is  the  cost  of  help,  it 
is  necessary  to  keep  records  showing  the  amount  of  work  done 
and  the  salaries  paid.  Probably  the  commonest  method  is  the 
use  of  a  mechanical  device  for  recording  the  time  each  employee 
starts  work  and  finishes.      Time-recording  clocks  are  used  in 


Where 

to 
enter 

A  credit 
purchase 

Outgoing  cash 

A  credit 
sale 

Incoming  cash 

Remittance 
on  account 

Cash 
purchase 

Payment 
on  account 

Cash  sale 

Journal 

or 
record 
group 

of 
books 

(1) 
Bill  or 
register 
of  sale 

(1) 
Bill  or 
register 
of  sale 

(1) 
Cash  book 

(1) 
Cash  book 

(1) 
Cash  book 

(2) 
Cash  book 

(1) 
Invoice 
register 

(2) 
Journal 

(2) 
Journal 

Ledger 

or 
balance 
group 

of 
books 

(3) 

Individual 

ledger 

account 

(2) 

Individual 

ledger 

account 

(3) 

Customers' 

ledger 

(2) 

Customers' 

ledger 

(4) 
Accounts 
receivable 

(3) 
Accounts 
receivable 

(4) 
Accounts 
payable 

(3) 
Accounts 
payable 

(4) 
Ledger 

cash 
account 

(2) 
Ledger 

cash 
account 

(4) 
Ledger 

cash 
account 

(3) 

Ledger 

cash 

account 

(5) 
Merchan- 
dise 

(3) 
Merchan- 
dise 

(5) 
Merchan- 
dise 

(4) 
Merchan- 
dise 

FIGURE  61 :     If  you're  looking  for  a  quick  way  to  learn  where  to  make  any  book- 
keeping entry,  you'll  find  this  chart  a  great  help.     When  you  receive  or  pay  out 
money,  whether  the  transaction  is  for  cash  or  for  credit,  your  first  entry  is  invari- 
ably at  (1)  under  the  proper  heading,  then  at  (2),  and  so  on. 
155 


Statement  of  Condition 

June  30 
1918 

July  31 
1918 

Increase 

Decrease 

Assets 
Plant  and  machinery 
Patents,  good  will,  etc. 
Supplies  and  unfinished  goods 
Accounts  receivable 
Bills  receivable 

Cash                      ^       , 

Total  assets 

Liabilities 
Capital  stock 
Accounts  payable 
Bills  payable 
Reserve  for  bad  accounts 
Surplus 

Total  liabilities 

FIGURE  62:     The  manager  receives  periodically  a  statement  of  condition.     A 

comparison  of  total  assets  with  total  liabilities   will   indicate  where  the  business 

stands.     A  banker  asks  for  a  statement  of  condition  before  lending  money. 


GREAT  WESTERN  RAILROAD 

BALANCE  SHEET,  DECEMBER  31 


ASSETS- 

Road  and  equipment..  . 

Deposits  in  lieu  of  mort- 
gaged  property   sold, 


1917 

$ 

40,630,187 


1916 

$ 

39,309,357 


etc 


Invested  in  affiliated 
companies: 

Stocks  

Bonds    

Advances 

Other  investments  .... 

Cash 

Special  deposits 

Traffic,  etc.,  balances.. . 

Agents  and  conductors. 

Miscellaneous 

Material  and  supplies. . 

Deferred  assets 

Prepaid  rents  and  insur- 
ance premiums   

Unadjusted  debits     .    . 

Securities  issued  or 
assumed  (unpledged). 
Total 


3,658,676      4.410,251 
30  30 


362,123 
501,835 
492,014 

30,682 
258,087 
168,842 
244,092 

48,876 

33,480 
1.21S 


362,123 
501.835 
438,441 
695,080 

51,250 
160,416 
139,397 
218.524 

57.393 

32.705 
550 


46.432,299     46.412.311 


LIABILITIES— 

Common  stock     

Preferred  stock.  . . 

Stock  for  conversion... 

Common   stock 

Preferred   stock 

Equipment   obligations. 

Mortgage  bonds 

Receipts  for  funded  debt 
Loans  and  bills  payable 
Traffic,  etc.,  balances  . 
Accounts  and  wages    .  . 

Miscellaneous .  . 

Matured  interest,  etc. . . 
Accrued  interest,  etc.  . 
Accrued  depreciation  . 
Additions    to    property 

through   income    and 

surplus 

Profit  and  loss   


1917 
$ 

12.707.941 
12,962.392 

253.500 

33.200 

1.023,000 

15.432,500 

1.000 

350.000 

219,738 

393,882 

83,700 

124,690 

143,429 

409,356 


758,560 
,535.412 


1916 
$ 

12,707,941 
12.962,392 

253,500 

33,200 

1.200.000 

15,432.500 

1.000 

350.000 

232.730 

413.590 

32,800 

112.163 

145,242 

348.439 


745.019 
1.441,795 


46.432.299     46.412.311 


FIGURE  63:     Many  very  large  corporations  publish  their  balance  sheets  for  the 

benefit  of  their  stockholders,  who  may  include  not  only  private  individuals,  but  also 

banks,  trust  companies,  and  in  many  cases  even  other  corporations. 

156 


THE  ACCOUNTING   DEPARTMENT  157 

many  establishments  because  of  the  simple  method  of  recording 
the  time  of  arrival  and  departure,  or  the  time  spent  on  any  special 
assignment  of  work,  by  just  punching  a  card.  Other  firms  use 
cards  on  which  the  timekeeper  punches  or  marks  the  hour  of 
arrival  and  departure.  The  payroll  is  made  up  from  these  re- 
cords which  the  timekeeper  sends  in  to  the  office. 

What  cost  accounting  is.  One  branch  of  accounting  which 
is  attracting  more  and  more  attention  is  cost  accounting.  This 
is  not  so  much  a  method  of  bookkeeping  as  it  is  a  method  of 
keeping  records  of  the  cost  of  materials,  labor,  and  overhead 
(general  or  administration)  expenseg' entering  into  the  manufac- 
tured product.  The  cost  records  are  usually  handled  in  the 
accounting  department. 

The  use  of  accounting  machines.  The  work  of  the  ac- 
counting department  has  been  much  simphfied  in  the  last  few 
years  by  the  invention  of  various  accounting  machines.  This 
means  that  in  many  concerns  bookkeeping  is  largely  a  mechanical 
process  and  the  clerk  simply  learns  how  to  operate  the  bookkeep- 
ing machine. 

As  one  result  of  the  extent  to  which  modern  labor-saving  de- 
vices have  been  used  in  accounting  and  record  keeping,  it  is  now 
possible  for  a  manager  to  know  at  10  o'clock  every  morning  all 
the  details  of  his  business  for  the  previous  day,  so  that  he  knows 
exactly  where  he  stands.  Formerly  a  business  man  considered 
himself  fortunate  if  he  could  get  a  statement  by  the  tenth  of  the 
month  of  the  previous  month's  business. 

The  typewriter  in  the  accounting  department.  The 
most  commonly  used  machine  for  making  accounting  records  is 
the  typewriter,  particularly  in  making  out  orders,  bills,  state- 
ments, looseleaf  and  card-index  material.  The  most  frequently 
employed  record  of  the  office  is  the  totals  of  columns  of  figures, 
which  may  be  accurately  and  quickly  obtained  by  the  aid  of  the 
non-listing  adding  machine.  WTiere  a  fist  of  the  numbers  added 
is  desired,  it  is  necessary  to  employ  a  listing  machine. 

If  an  itemized  fist  is  wanted  with  products,  remainders,  and 
totals,  as  in  bills  and  statements,  use  a  billing  machine,  which 
is  a  sort  of  combination  typewriter  and  adding  machine.  When 
the  work  is  completed,  one  operation  has  recorded  the  figures 


158  OFFICE  TRAINING  AND  STANDARDS 

in  the  desired  column  and  found  the  necessary  remainders  and 
totals.  As  many  as  12  copies  may  be  made  at  one  time,  so  that 
practically  all  of  the  operations  involved  in  keeping  the  necessary 
records  can  be  performed  with  a  machine. 

The  statistical  machine.  One  of  the  most  interesting 
recording  machines  is  known  as  the  Hollerith.  This  is  an  auto- 
matic, electrically  operated  machine,  which  is  employed  by  large 
estabUshments  for  compiling  statistical  information  and  state- 
ments. Cards  containing  figures  representing  special  informa- 
tion are  punched  by  means  of  the  perforating  attachment.  These 
cards  are  all  placed  in  the  machine  and  assorted  by  it  auto- 
matically, selecting  only  the  cards  containing  the  desired  infor- 
mation, and  rejecting  the  others. 

To  find  any  given  total,  the  machine  is  set  to  operate  only 
on  cards  with  a  certain  perforation  and  the  totals  are  given  for 
such  subjects.  Where  thousands  of  items  are  handled,  this 
machine  makes  it  possible  to  obtain  in  a  comparatively  short 
time,  complete  statistical  records  which  otherwise  would  take 
weeks,  months,  or  even  years  to  compile.  One  machine  will 
handle  15,000  cards  an  hour. 

The  billing  machine.  The  billing  machine  is  often  an  im- 
portant time  saver.  "WTien  goods  are  purchased  from  the  factory 
or  wholesale  house,  the  bill  sent  to  the  merchant  is  usually  called 
an  invoice.  Duplicate  sales  sUps  are  made  at  the  time  of  pur- 
chase and  a  copy  sent  to  the  accounting  department  as  soon  as 
shipment  is  completed.  "Itemized  bills"  are  made  out  from 
these  sales  slips,  showing  the  proper  extensions  and  totals. 
If  part  payments  are  made  or  any  goods  returned,  credits  are 
shown  in  red  ink. 

The  accounting  department  must  not  only  be  able  to  show 
that  all  the  transactions  of  buying  and  selling  are  properly  re- 
corded, but  the  manager  will  want  to  know  which  transactions 
are  profitable,  and  whether  the  business  is  increasing  in  volume 
v\'ithout  any  unnecessary  increase  in  expense.  It  is,  therefore, 
evident  that  a  ledger  which  is  always  in  balance  and  will  show 
a  perpetual  inventory  of  stock,  is  often  very  desirable. 

This  is  made  possible  by  means  of  the  adding-subtracting 
ledger-posting  machine.     Both  debits   and    credits   are  posted 


thet  fiT     J  •"'^  ^''°""''  ^'^  '^^"'^'"^  '"   the  office  shown  here.     In 

these  fihng  drawers  is  a  card  for  every  account.     The  broad,  flat  drawers  make  it 

possible  for  the  girls  to  handle  the  cards  with  a  minimum  of  time  and  effort 


FIGURE  65:     Statistical  machines  like  these  do  the  work  that  would  otherwise 

require  a  whole  army  of  bookkeepers  and  clerks.     The  machine  in  the  foreground 

handles  250  cards  a  minute  and  an  inexperienced  girl  can  easily  run  it. 

159 


All  necessary       ) 
financial  information' 


Executive's  desk 

Six  daily  reports  _ 

on  his  desk  - 

every  morning  f 

cover  all  previous 

da^'s  work  i 


All  necessary 

information  about 

clerical  routine 


DAILY  LIST 

^^ ^_.,,,^       n,..                                No 

Order 
department 

Order 

1.^ 

i 

j 

i 

n     s- 

report 

DAILY  REPORT 

▲ 

_ 

I 

O'OfS  despatched      Dale 

No 

t 

All  necessary 

" 

- 

Order 

1' 

i 

1 

1 

i': 

J 

1 

Rert^arks 

information  about 

orders 

— 

- 

- 

- 



— 

z 

:- 

- 

— 

z 

^' 

L- 

L 

L 

^ 



n 

" 

r 

-- 

-- 

- 

- 

= 

*"  u'ed 

Shipping       1 

department 

report         i 

Report                           F-B— ret 

Dcla.l$  ot  all  orders  desoalched 

FIGURE  66:  These  reports  are  what,  to  a  large  extent,  justify  the  work  of  the 
accounting  department.  They  summarize  the  entire  activity  of  the  concern,  and 
tell  the  manager  just  what  took  place  the  previous  day.  With  these  before  him,  he 
can  see  how  the  business  is  progressing  and  bolster  up  any  weaknesses  he  may  find. 

160 


THE  ACCOUNTING  DEPAIITMENT  161 

at  one  run,  and  the  balance  instantly  calculated  by  the  machine. 
This  is,  of  course,  a  great  time-saver  as  well  as  trouble-saver  when 
it  comes  to  making  out  monthly  statements  and  trial  balances. 
The  machine  is  easy  to  operate. 

Looseleaf  and  card-index  systems.  The  use  of  looseleaf 
or  card  ledger  systems  makes  possible  the  adoption  of  machine 
bookkeeping.  Any  number  of  clerks  can  work  on  the  accounts  at 
the  same  time;  each  account  may  be  kept  entirely  independent 
of  others,  balanced,  removed,  or  filed,  as  is  found  most  convenient. 

Looseleaf  and  card-index  systems  also  permit  the  classifica- 
tion of  accounts  in  a  logical  order  and  the  expansion  of  business 
by  the  filing  of  the  balanced  or  closed  accounts  and  the  insertion 
of  new  sheets  without  the  expense  and  labor  of  opening  new  books. 

One  point  to  remember  is  that  the  records  kept  by  the  ac- 
counting department  or  by  any  other  department,  for  that  mat- 
ter, are  not  kept  for  the  sake  of  keeping  records.  They  are 
worth  while  only  as  they  help  to  indicate  the  condition  and  prog- 
ress of  the  business.    Study  Figure  66  carefully. 

Reports  for  the  executive.  The  executive  must  watch  all 
departments,  large  and  small;  he  must  watch  men  and  their  work ; 
he  must  watch  routine  work — the  amount,  the  cost,  the  time  re- 
quired, and  the  method  used — whether  it  is  buying  or  selling, 
production  or  administration.  Reports  furnished  him  by  the 
accounting  department  will  enable  him  to  do  so  as  no  other 
method  could.  He  can  compare  this  week's  costs  with  last 
week's  and  with  the  same  week  a  year  ago — he  can  compare  one 
department's  progress  with  another — he  can  place  his  finger  on 
weak  spots  and  apply  a  proper  remedy  to  whatever  condition 
is  below  normal. 

ACCOUNTING  STANDARDS 

The  work  of  the  accounting  department 

1.  Three  important  kinds  of  records  are  kept  in  the  accounting  depart- 
ment: cash  received  and  paid  out;  the  amounts  due  and  the  amounts  owing; 
the  volume  of  business  done  and  the  cost  of  doing  it. 

2.  In  addition  to  keeping  records,  the  accounting  department  also  pre- 
pares statistical  reports  for  the  manager. 

3.  Sometimes  a  separate  statistical  department  prepares  the  reports, 
especially  in  very  large  corporations. 


162  OFFICE  TRAINING  AND  STANDARDS 

4.  Three  of  the  facts  brought  out  bj'  these  reports  are  the  progress  of  the 
business,  the  progress  of  departments,  and  the  profits  and  losses. 

5.  The  manager  studies  these  reports  to  pick  out  the  weak  spots  and  to 
take  steps  to  strengthen  them. 

6.  Statements  of  accounts  should  be  mailed  regularly  and  on  time. 

7.  A  simple  form  of  statement  is  one  giving  the  dates  and  the  charges, 
with  the  credits  and  the  balance  due. 

8.  Many  banks  use  ledger-posting  macliines,  enabling  them  to  obtain 
balances  whenever  desired  without  loss  of  time. 

9.  Pa>Toll  records  are  made  up  from  the  time  cards  of  the  employees. 

10.  Cost  accounting  shows  the  cost  of  materials,  labor,  and  overhead 
expenses  entering  into  the  manufactured  product. 

11.  Records  are  not  kept  for  the  sake  of  keeping  records. 

12.  Records  are  worth  while  only  as  they  help  to  indicate  the  progress  and 
the  conditioirW  the  business. 


ACCOUNTING  STANDARDS 

Elementary  principles  of  bookkeeping 

1.  Bookkeeping  is  the  keeping  of  records. 

2.  Accounting  is  the  interpreting  of  records. 

3.  The  ledger  is  probably  the  most  important  record  in  bookkeeping. 

4.  The  double-entry  system  of  bookkeeping  helps  to  make  the  ledger 
more  accurate. 

5.  In  double-entry  bookkeeping,  two  entries  are  made  in  the  ledger  for 
every  transaction:  for  every  charge  there  is  a  credit,  and  for  every  credit  there 
is  a  charge. 

6.  The  looseleaf  ledger  has  a  separate  leaf  for  every  account. 

7.  The  left-hand  side  of  the  ledger  is  called  the  charge  or  debit  side. 

8.  The  right-hand  side  of  the  ledger  is  called  the  credit  side. 

9.  When  the  total  credit  entries  of  all  accounts  are  equal  to  the  total 
debit  entries  of  all  accounts,  the  ledger  is  said  to  be  in  balance. 

10.  The  operation  of  comparing  the  credit  totals  with  the  debit  totals  is 
called  taking  a  trial  balance. 

11.  The  balance  sheet  is  a  statement  of  the  assets  and  liabilities  of  a 
business.    It  shows  the  condition  of  the  business  at  any  stated  time. 

12.  Entries  are  usually  transferred  to  the  ledger  from  some  other  source, 
such  as  books  of  original  entry. 

13.  The  transfer  of  items  from  the  books  of  original  entry  to  the  ledger 
is  called  "posting." 

14.  The  four  commonest  books  of  original  entry  are  the  journal,  the  cash 
book,  the  purchase  book,  and  the  sales  book. 

15.  In  the  journal  the  transactions  are  lined  up  one  after  another  as  they 
take  place. 

16.  Each  transaction  is  represented  by  two  items  in  the  journal,  a  credit 
item  and  a  debit  item. 


THE  ACCOUNTING  DEPARTMENT  1G3 

17.  In  the  cash  book  is  recorded  all  money  received  and  paid  out. 

18.  Cash  received  is  entered  on  the  left  or  debit  side  of  the  cash  book. 

19.  Cash  paid  is  entered  on  the  right  or  credit  side  of  the  cash  book. 

20.  In  the  purchase  book  are  entered  all  purchases  made  from  others. 

21.  In  the  sales  books  are  entered  all  sales  made  to  others. 

22.  These  five  books — the  ledger,  the  journal,  the  cash  book,  the  purchase 
book,  and  the  sales  book — are  the  fundamental  books  on  which  all  others 
are  based. 

ACCOUNTING  STANDARDS 

Credit  and  collection  records 

1.  Since  a  large  part  of  business  is  done  on  a  credit  basis,  certain  records 
must  be  kept  to  determine  whether  customers  are  worthy  of  credit. 

2.  Some  of  the  sources  of  information  about  customers  are  salesmen, 
banks,  newspapers,  trade  journals,  and  credit  reporting  agencies. 

3.  Different  firms  use  different  credit  records. 

4.  One  firm  records  credit  information  on  a  3  by  5  inch  card,  giving  the 
name,  address,  rating,  ledger  account  number,  and  oth"er  useful  or  interesting 
information. 

5.  Another  firm  places  the  credit  rating  at  the  top  of  the  customer's  ledger 
account. 

6.  Still  another  firm  places  all  credit  information  concerning  customers 
in  letter-size  folders,  filing  them  numerically. 

7.  A  collection  record  is  used  to  watch  payments  on  accounts,  in  order 
not  to  let  the  account  run  too  long  before  it  is  "cleaned  up." 

8.  One  method  is  to  use  a  special  follow-up  card  showing  the  dates  notices 
are  mailed,  or  the  calls  made  by  the  collector;  the  payments  made;  the  balances 
due;  any  special  action  taken,  and  so  forth. 

9.  By  the  use  of  tabs  or  signals,  attention  may  be  called  to  any  account 
card  whenever  desired. 

10.     Collections  should  be  followed  up  carefully  and  firmly. 

ACCOUNTING  STANDARDS 

The  use  of  labor-saving  devices 

1.  The  use  of  labor-saving  devices  in  the  accounting  department  makes 
it  possible  for  a  manager  to  know  every  morning  at  10  o'clock  all  the  details 
of  the  previous  day's  business. 

2.  The  use  of  looseleaf  and  card  ledger  devices  makes  possible  the  use 
of  machines  in  bookkeeping. 

3.  These  devices  also  permit  the  logical  classification  of  accounts  and 
other  information. 

4.  The  typewriter  is  used  in  writing  orders,  bills,  statements,  looseleaf 
and  card-index  records. 

5.  Columns  of  figures  are  added  on  adding  machines. 

6.  A  non-listing  adding  machine  simply  adds  the  figures,  giving  the  total. 


164  OFFICE  TRAINING   AND  STANDARDS 

7.  A  listing  machine  not  only  adds  the  figures,  but  also  prints  each 
figure  on  a  slip  of  paper,  thus  furnishing  a  check. 

8.  A  billing  machine  is  a  combination  typewriter  and  adding  machine. 

9.  With  a  billing  machine  you  can  obtain  a  printed  list  of  items,  with 
products,  balances,  and  totals. 

10.  The  Hollerith  statistical  machine  is  used  to  compile  statistics  where 
a  large  number  of  figures  is  handled.  This  machine  sorts  punched  cards  at 
the  rate  of  15,000  an  hour. 


STANDARD  QUESTIONS 

The  work  of  the  accounting  department 

1.  What  is  the  purpose  of  keeping  books? 

2.  What  kinds  of  records  are  kept  in  the  accounting  department? 

3.  What  must  records  show  to  make  them  worth  while? 

4.  Why  is  it  necessary  for  executives  to  receive  frequent  reports  of  the 
condition  of  the  business? 

5.  What  three  important  facts  are  brought  out  by  the  reports  prepared 
for  the  manager? 

6.  What  does  a  simple  statement  of  account  include? 

7.  Why  are  monthly  statements  sent  to  customers? 

8.  If  the  accounting  department  should  be  especially  busy  one  month, 
would  there  by  any  objection  to  putting  off  mailing  the  statements  until  the 
next  month? 

9.  What  is  cost  accounting? 

10.    Why  is  accuracy  so  necessary  in  keeping  books? 

STANDARD  QUESTIONS 

Elementary  principles  of  bookkeeping 

1.  What  is  the  difference  between  accounting  and  bookkeeping? 

2.  What  is  the  journal? 

3.  What  is  the  cash  book? 

4.  What  is  the  ledger? 

5.  What  is  the  purchase  book  used  for? 

6.  What  is  the  sales  book  used  for? 

7.  What  are  the  four  commonest  books  of  original  entry? 

8.  What  is  meant  by  debit  and  credit? 

9.  Which  side  of  the  ledger  is  the  debit  side?    The  credit? 

10.  What  is  the  most  important  set  of  records  in  bookkeeping? 

11.  What  is  the  double-entry  system? 

12.  What  is  meant  by  "posting"? 

13.  On  which  side  of  the  cash  book  would  you  enter  cash  received? 

14.  On  which  side  would  you  enter  cash  paid  out? 

15.  What  are  assets? 

16.  What  are  liabilities? 


THE   ACCOUNTING  DEPARTMENT  165 

17.  "VVTiat  is  the  trial  balance  and  what  does  it  show? 

18.  When  is  the  ledger  in  balancs? 

19.  What  is  the  balance  sheet? 

20.  What  does  the  balance  sheet  tell  you  about  the  business? 

STANDARD  QUESTIONS 

Credit  and  collection  records 

1.  Why  is  it  necessary  to  keep  credit  records? 

2.  Do  all  firms  use  the  same  kind  of  credit  records?    Why  or  why  not? 

3.  Name  three  methods  by  which  credit  records  are  kept. 

4.  What  are  four  sources  of  information  about  customers? 

5.  What  is  the  purpose  of  collection  records? 

6.  What  methods  are  used  by  three  different  firms  to  watch  overdue 
accounts? 

7.  How  may  attention  be  called  to  an  account  at  any  desired  time? 

8.  Why  should  collections  be  followed  carefully  and  firmly? 

9.  If  a  customer  ignores  a  statement,  what  can  be  done? 
10.    What  final  step  may  be  taken  to  enforce  payment? 

STANDARD  QUESTIONS 

The  use  of  labor-saving  devices 

1.  Name  four  machines  that  have  simplified  to  a  considerable  extent  the 
bookkeeper's  work. 

2.  What  are  the  advantages,  if  any,  of  looseleaf  ledgers? 

3.  For  what  purpose  may  the  typewriter  be  used  in  the  accounting 
department? 

4.  What  does  the  adding  machine  do  that  the  bookkeeper  used  to  do? 

5.  What  is  the  difference  between  a  listing  and  a  non-listing  adding 
machine? 

6.  What  is  a  billing  machine? 

7.  What  machine  is  used  for  compiling  statistics? 

8.  What  are  several  methods  used  commonly  for  making  up  the  payroll? 

9.  How  are  statements  made  by  machinery? 

10.    Is  bookkeeping  by  machinery  more  accurate  or  less  accurate  than 
other  methods?    Why  or  why  not? 

STANDARD  EXERCISES 

The  use  of  labor-saving  devices 

1.  Make  a  list  of  all  the  uses  of  a  typewriter  in  the  accounting  department. 

2.  Make  a  list  of  all  the  uses  of  a  typewriter  that  you  can  recall,  either 
in  the  accounting  department  or  in  any  other  department. 

3.  Make  a  list  of  any  other  uses  you  can  imagine  a  typewriter  might  be 
used  for. 


166 


OFFICE  TRAINING  AND  STANDARDS 


4.  Make  a  list  of  the  jobs  an  adding  machine  can  do,  distinguishing  be- 
tween adding  machines  for  different  purposes,  and  explaining  how  each  kind 
is  particularly  fitted  for  certain  work. 

5.  Make  a  list  of  all  the  different  office  machines  you  ever  saw  or  heard 
of,  and  place  in  one  column  all  those  that  can  be  used  in  the  accounting  de- 
partment, explaining  how  each  machine  is  used. 

STANDARD  EXERCISES 

The  work  of  the  accounting  department 
(Questions  similar  to  these  are  asked  by  the  New  York  State  Board  of 

Examiners  as  a  test  in  speed,  accuracy,  and  accounting.) 

Make  up  the  payroll  from  the  following  time  sheet,  filling  in  the  columns 

"total  hours"  and  "wages  due"  and  totaling  the  last  column. 


Time  Sheet'  for  Week  Ending  Jan.  13 


Time  in  hours 


Total 
hours 


Rate  per 
hour 


Wages 
due 


No. 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 


Name 


M 


Jones,  L.  C 

Brown,  G.W... 
Boylan,  C.  C... 
Eastman,  A.  B . 

Cook,  E.  A 

Winslow,  W.  W. 
Fenno,  L.  M . . . 
Rogers,  W.T.. 

Gray,  L.  P 

Baird,  J.  G 

Bills,  C.E 

Jeffers,  G.  R.  .. 
Patton,  W.  L. . . 

Bliss,  G.  G 

Day,  R.  G 

Grant,  E.  F. . . . 
Newman,  F.  C. . 

Glass,  J.  G 

White,  C.  C... 
Black,  B.W.... 
Green,  J.  G . . . . 
Ayers,  C.  B.... 
Wylie,  H.  H... 

Hunt,  L.  S 

Howe,  S.  C .  .  . . 


7H 
3 

m 

7K 
9 

8^ 

8M 
7M 
10 
7M 
8 

7H 
8K 
IVa 
8 
VA 

m 

8 

7M 

6 

8 

9% 

8 


4 

8 

7K 
9 
8 

8M 
10 

m 

9 

m 

7 

W2 

7 
9 

7 


W 
2 

93^ 

7 

8^ 
9 

8M 
8^ 
8^ 
7^ 

7M 

8^1 

8 

8M 

7^ 

7M 

9M 

8M 

9 

6>^ 

5 

8K 

7 


4 
2 

6>i 
7 

9^ 
8M 
8 

7M1 
6^ 
8H 
8M 
8 
10 
93^ 

W2 

9 

9M1 

9 

7M 

8 

7H 

SH 

9 


F     S 


.40 
.24 
.32 
.32 
.25 
.48 
.22H 
.15 
.123^ 
.20 
.50 
.333^ 
.60 
.75 
.25 
.37H 
.40 
•  623^ 
.30 
1.00 
.45 
.35 
.42 
.52 
.55 


Total  payroll  for  the  week . 


THE  ACCOUNTING  DEPARTMENT 


167 


STANDARD  EXERCISES 

Computations  in  the  accounting  department 
Find  the  value  of: 

doz.  gloves @  $6.70     a  doz 


X. 

2. 

88 

3. 

7j 

4. 

93 

5. 

55 

6. 

508 

7. 

105 

8. 

525 

9. 

498 

10. 

993 

11. 

825 

12. 

750 

13. 

1,275 

14. 

6,400 

15. 

5,235 

16. 

1,224 

17. 

5,500 

18. 

15,750 

19. 

13,600 

20. 

12,345 

21. 

8,900 

22. 

6,400 

23. 

4,400 

24. 

305,000 

25. 

13,434 

doz.  collars @      .73     a  doz. 

714  doz.  ties @    4.50     a  doz. 

doz.  buttons @      .093^  a  doz. 

doz.  pencils 

lbs.  nails 

lbs.  wire 

lbs.  guano 

lbs.  oatmeal 

lbs.  feed 

fence  posts 

bolts 

paving  stones . .  . 

fence  posts 

paving  blocks . . . 

tiles @  10.05 

ft.     lumber @  37.00 

bricks @  15.75 

shingles @  13.40 

iron  posts ©    9.66% 

lbs.  coal @  16.20 

lbs.  feed @  88.00 

lbs.  hay @  16.40 

lbs.  bran @  15.25 


@  .44 
@  3.05 
@  1.25 
@  5.25 
@  4.92 
@  8.95 
@  8.25 
@  3.50 
©  12.75 
@  8.80 
@  10.89 


a  doz. 
a  cwt. 
a  cwt. 
a  cwt. 
a  cwt. 
a  cwt. 
aC.  . 
aC.  . 
aC.  . 
aC.  . 
aC.  . 
aM.. 
aM.. 
aM.. 
aM.. 
aM.. 
aT.. 
aT.. 
aT.  . 
aT.  . 


lbs.  iron  ore @  10.33%  a  T. 


STANDARD  EXERCISES 

Elementary  principles  of  bookkeeping 

1.  With  pen  and  rule  show  a  cash-book  page;  a  journal  page;  a  ledger  page. 

2.  James  Black  owed  Allison  &  Company  S325.70  according  to  a  state- 
ment rendered  the  last  of  the  month.  Black  purchased  merchandise  on  the 
8th  to  the  amount  of  $300.60,  was  credited  with  merchandise  returned  $12.40 
on  the  9th.  Paid  cash  $300  on  the  15th.  Purchased  merchandise  on  the  12th 
to  the  amount  of  $460.25  and  paid  cash  $361.90  on  the  29th.  How  much  balance 
would  his  statement  show? 

3.  (a)  From  the  following  debits  and  credits  make  a  trial  balance: 

Proprietor  Cr.  $5,522.16;  Cash  Dr.  $10,640,  Cr.  S7,577; 
Mdse.  Dr.  $6,848,  Cr.  $5,290;  Expense  Dr.  $842,  Cr.  $25;  Interest 
Dr.  $8.56,  Cr.  $6.40;  Notes  receivable  Dr.  $630,  Cr.  $425;  Ac- 
counts Receivable  Dr.  $8,462,  Cr.  $7,240;  Notes  Payable  Dr. 
$465,  Cr.  $630;    Accounts  Payable  Dr.  $5,240,  Cr.  $6,420. 


168  OFFICE  TRAINING  AND  STANDARDS 

(b)  Make  a  trial  balance  by  differences,  using  the  same  debits  and 
credits. 

4.  If  your  statements  show  the  following,  what  is  the  condition  of  the 
business?  Which  are  assets  and  which  liabilities?  Draw  up  in  the  form  of  a 
balance  sheet. 

Notes  payable $425 

Accounts  payable 5,420 

Merchandise  worth 6,200 

Cash  on  hand 4,200 

Notes  receivable 837 

Accounts  receivable 6,280 

5.  What  is  the  condition  of  the  following  business?  Draw  up  in  the  form 
of  a  balance  sheet: 

Merchandise  on  hand $1,240 

Cash 460 

Coal  on  hand 120 

Accounts  receivable 320 

Notes  receivable 640 

Notes  payable 1,225 

Accounts  payable 1,750 

STANDARD  EXERCISES 

Credit  and  collection  records 

1.  Design  a  looseleaf  system  for  gathering  credit  information,  and  explain 
the  meaning  of  each  item. 

2.  Design  a  card  system  for  watching  collections  and  explain  how  it  is  used. 

3.  Design  a  complete  collection  system,  explaining  in  detail  how  it  operates. 

4.  Explain  how  you  would  find  the  rating  of  a  customer,  and  what  that 
rating  means. 

5.  Design  a  form  of  daily  report  for  the  accounting  department  to  make 
to  the  general  manager,  showing  the  status  of  collections. 


CHAPTER  XII 

THE  TREASURER'S  OFFICE 

JUST  as  the  treasury  department  in  Washington  has  charge 
of  the  government  treasure  or  funds,  so  the  treasurer  of 
a  concern,  or  the  person  who  fulfils  the  duties  of  that 
office,  has  supervision  over  the  concern's  money  matters.  He 
is  responsible  for  the  funds  of  the  company.  In  order,  there- 
fore, to  enable  us  to  understand  just  what  the  treasurer  does 
and  how  his  assistants  can  help  him  in  the  most  effective  way 
we  ought  to  have  a  pretty  clear  idea  of  just  w^at  is  meant 
by  the  word  "funds." 

What  are  * 'funds?"  "Funds"  is  a  rather  general  term 
appUed  to  the  money  and  securities  of  a  concern.  It  covers 
all  forms  of  money,  from  what  is  in  the  cash  drawer — including 
checks,  currency,  bills,  notes,  drafts,  and  so  forth — to  all  the 
bank  deposits,  and  loans,  as  well  as  the  investments  in  the 
stocks,  bonds,  and  conmiercial  paper  of  other  concerns.  The 
treasurer  may  therefore  well  be  entitled  to  be  called  the  financial 
manager  of  a  company,  or  the  manager  of  its  finances  and 
financial  matters. 

The  meaning  of  finance.  "Finances"  is  an  attractive 
sounding  word,  but  its  meaning  is  really  quite  simple,  and 
when  we  say  that  the  treasurer  is  the  manager  of  the  finances, 
we  mean  merely  that  he  is  the  man  who  looks  after  the  money 
matters.  Now,  of  course,  for  one  man  to  attend  to  all  the 
money  matters  of  a  concern  of  any  size  would  be  impossible; 
therefore  he  delegates  parts  of  his  work  to  others,  especially  the 
greater  part  of  the  accounting,  which  is  handled  by  the  account- 
ing department.  Of  course,  the  number  of  people  on  the 
treasurer's  staff  will  depend  to  a  great  extent  upon  the  size  and 
nature  of  the  business. 


170  OFFICE  TRAINING  AND  STANDARDS 

What  the  treasurer's  office  does.  If  we  were  to  outline 
the  duties  of  the  treasurer's  office,  it  would  look  like  this: 

(1)  provision  of  funds  for  carrying  on  the  company's  business 

(a)  capital 

(b)  current  expenditures 

(c)  loans 

(2)  care  of  and  responsibility  for  the  company's  funds 

(a)  receiving  moneys 

(b)  accounting  for  moneys 

(c)  depositing  moneys  in  the  bank 

(d)  disbursing  moneys 

(e)  investing  surplus  funds 

(3)  representing  the  company  in  dealings  with  the  bank 

(a)  borrowing 

(b)  collections  through  drafts,  acceptances 

(c)  discounting  bills 

(d)  advice  and  information 

(4)  care  of  the  company's  property 

(a)  insurance 

(b)  rents 

(c)  taxes 

(d)  repairs  ■ 

(e)  improvements 

The  accounting  department,  as  we  learned  in  an  earlier 
lesson,  handles  most  of  the  bookkeeping  connected  with  some 
of  these  duties,  and  the  cashier  handles  the  cash  received,  acting 
for  the  treasurer  in  doing  so.  But  the  responsibihty  rests  with 
the  treasurer.  No  money  can  be  paid  out  without  his  authority, 
and  he  is  constantly  on  the  watch  to  see  that  the  company's 
property  is  at  all  times  conserved. 

Since  many  of  the  treasurer's  duties  are  usually  outlined 
clearly  in  the  by-laws  of  the  company,  it  may  help  you  to  get  a 
set  of  corporation  by-laws  and  study  them  carefully. 

Why  capital  must  be  provided.  Without  money  a  busi- 
ness cannot  run.  This  seems  so  obvious  as  to  be  almost  unnec- 
essary to  state  as  a  fact,  but  you  would  be  surprised  if  you  knew 
how  many  concerns  commence  business  with  insufficient  capital, 
and  are  handicapped  for  lack  of  money.  Hence  the  first  step 
in  commencing  business  is  to  provide  the  capital.  This  is 
usually  the  treasurer's  first  job.  In  fact,  as  the  business  expands, 
the  treasurer  may  be  asked  to  find  new  capital. 


THE  TREASURER'S  OFFICE  171 

How  capital  is  obtained.  Capital  is  provided  usually  by 
the  sale  of  stock  or  bonds  or  shares.  In  a  partnership  the 
partners  furnish  the  capital.  One  partner  may  furnish  the 
money  and  the  other  the  experience.  The  partner  who  fur- 
nishes the  money  often  acts  as  treasurer.  The  treasurer  must 
not  only  obtain  the  capital,  but  he  must  also  see  that  the  money 
is  spent  for  the  purpose  for  which  it  was  obtained. 

Even  after  a  company  has  started  business,  it  may  require, 
and  usually  does,  varying  amounts  of  money  for  temporary 
use.  It  would  be  unwise  for  the  treasurer  to  sell  the  company's 
stock  to  get  money  for  temporary  purposes,  so  he  borrows  the 
money  needed  at  a  bank. 

Borrowing  money  from  the  bank.  Just  why  a  successful 
concern  should  borrow  money  may  not  be  clear  to  you.  Nearly 
all  business  houses  use  borrowed  money  to  meet  their  obliga- 
tions, simply  because  it  is  the  least  expensive  method.  A 
concern  will  borrow  money  at  6%  interest  if  it  is  reasonably 
certain  that  it  can  make  8%  or  more  with  that  money  before 
the  loan  is  repaid. 

Take  the  simple  proposition  of  paying  a  bill — assuming  that 
the  terms  are  2%  for  cash  within  10  days.  Now  suppose  that 
the  treasurer  has  not  sufficient  cash  in  the  bank  to  meet  the 
bill.  The  company's  money  is  not  idle;  on  the  contrary  it 
may  be  earning  such  liberal  profits  that  to  use  it  for  paying  that 
particular  bill  would  be  false  economy.  The  treasurer  therefore 
borrows  money  from  the  bank,  pays  the  bill,  takes  the  2% 
discount,  and  within  30  days  repays  the  loan  to  the  bank  at 
a  cost  of  3/^  of  1%  as  against  the  2%  which  he  earned  by  paying 
the  bill  promptly. 

In  the  coiu-se  of  a  year  a  concern  may  make  several  loans 
from  its  banks,  and  the  .treasurer  is  usually  the  man  who  deals 
with  the  bank — he  "negotiates"  the  loan,  watches  the  due  dates 
to  see  that  the  loan  is  repaid  promptly,  and  keeps  the  firm  on 
cordial  relations  with  the  bank. 

Making  payments  by  check. .  The  treasurer  also  sees  that 
the  deposits  in  the  ^banks  are  maintained  at  a  proper  level. 
Some  banks  require  a  deposit  to  be  at  least  $1,000  and  others 
more  or  less  than  that  sum.     Practically  all  firms  pay  their 


172  OFFICE  TRAINING   AND  STANDARDS 

bills  by  check,  and  the  treasurer  makes  sure  that  the  checks 
he  signs  are  correct,  not  too  much  and  not  too  little. 

One  way  in  which  this  accuracy  is  assured  is  to  attach  to 
the  check  a  "voucher"  which  is  simply  a  forna  stating  exactly 
what  the  money  is  paid  for,  and  who  approved  the  amount. 
Thus,  in  case  of  error,  the  mistake  can  be  quickly  traced  to  the 
one  responsible.  In  some  companies  two  persons  sign  the 
checks;  either  the  auditor  signs  with  the  treasurer,  or  the  presi- 
dent, or  the  secretary. 

Many  concerns  use  their  banks  to  get  cash  in  advance  for 
money  due  them.  This  money  may  be  in  the  form  of  loans 
and  accounts  receivable,  notes  receivable,  drafts,  or  trade 
acceptances.  In  borrowing  money  on  accounts  receivable  the 
treasurer  takes  to  the  bank  a  hst  of  the  firm's  accounts  receivable. 
If  the  banker  thinks  they  are  good  he  will  make  a  loan  on  them, 
with  the  understanding  that  when  the  bills  are  paid  the  money 
is  to  be  used  to  repay  the  loans. 

What  a  note  receivable  is.  A  "note  receivable"  is  a  note 
given  to  the  firm  by  someone  who  owes  the  firm  money.  Usually 
notes  receivable  run  for  30,  60,  or  90  "days,  although  they  may 
run  for  two,  three,  or  even  four  years.  If  the  firm  waited  until 
the  note  was  due,  it  would  be  30,  60,  or  90  days  before  it  could 
get  the  money.  If  it  wants  the  money  before  "maturity," 
the  treasurer  simply  takes  the  note  over  to  the  bank,  and  "dis- 
counts" it;  that  is,  the  bank  lends  him  the  amount  the  note 
calls  for,  less  the  interest  for  the  period  stated.  As  the  maturity 
date  approaches,  the  bank  notifies  the  maker  of  the  note  that 
his  note  is  coming  due,  and  that  he  should  be  prepared  to  pay 
it.  Of  course,  if  the  maker  "dishonors"  his  note  by  refusing, 
to  pay  it,  then  the  treasurer  will  be  under  obligations  to  make 
good  the  loss  to  the  bank. 

Watching  collections.  The  treasurer  keeps  a  watchful 
eye  on  collections.  The  usual  terms  on  which  goods  are  sold 
are  30  or  60  days.  Sometimes  to  encourage  prompt  payment 
a  discount  of  1%  or  2%  is  allowed  if  the  bill  is  paid  within  10 
days.  But  if  the  bill  isn't  paid  at  the  end  of  30  or  60  days,  the 
treasurer  takes  steps  to  collect  the  money.  Often  he  does 
this  through  the  collection  department  of  the  firm. 


THE  TREASURER'S  OFFICE  173 

An  account  may  run  so  long  that  drastic  measures  may  have 
to  be  taken  to  make  the  debtor  pay.  One  of  the  first  steps  is 
to  write  the  debtor  that  if  the  account  is  not  paid  by  a  certain 
date,  the  company  will  draw  on  him  through  his  bank.  This 
often  has  the  desired  effect,  since  few  men  like  to  have  their 
banks  present  drafts  to  them,  as  it  implies  a  lack  of  credit. 
If  this  notice  does  not  get  the  money,  the  treasurer  draws  a 
draft  on  the  debtor  and  sends  it  to  the  bank  for  collection. 
The  bank  presents  it  to  the  debtor  and  asks  for  payment.  A 
draft  is  an  order  upon  the  debtor  to  pay  to  the  creditor  the 
amount  due;  it  is  signed  by  the  creditor. 

If  the  debtor  decides  to  pay  the  draft,  he  writes  his  name 
across  the  face,  together  with  the  word  "accepted"  and  the 
date.  If  he  doesn't  wish  to  pay  it,  he  says  so,  or  else  doesn't  pay 
any  attention  to  it,  and  the  bank  then  returns  it  to  the  treasurer, 
who  decides  the  next  step  to  take  to  get  the  money. 

Investing  surplus  funds.  One  of  the  duties  of  the  treas- 
urer's office  is  the  investing  of  the  surplus  funds  of  the  company. 
By  "surplus  funds"  is  meant  the  money  which  the  firm  is  not 
using  or  is  not  likely  to  use  in  the  near  future.  If  these  funds 
were  allowed  to  lie  idle,  the  company  would  lose  interest  on  its 
money,  and  it  doesn't  take  long  for  interest  to  amount  to  a 
respectable  sum.  When  you  realize  that  the  interest  of  $100,000 
is  over  S16  for  only  one  day  at  6%,  you  can  readily  see  that 
the  question  of  investing  surplus  funds  is  important. 

In  deciding  just  how  he  shall  invest.these  funds,  the  treasurer 
considers  three  points  in  this  order:  marketabihty,  safety,  and 
yield.  Marketabihty  comes  first  because  if  the  concern  should 
need  money  in  a  hurry  the  first  place  to  turn  would  naturally 
be  its  investments;  the  treasurer  wants  something  he  can  sell 
or  borrow  on  at  a  moment's  notice. 

Next  comes  safety  of  principal.  With  most  people  not  in 
business,  safety  colnes  first,  but  a  business  man  can  afford  to 
take  chances  that  another  person  could  not.  He  can  watch 
market  prices  closely,  and  if  he  sees  values  decline  he  can  "switch" 
his  investments,  or  take  his  money  out  entirely  until  he  is  ready 
to  invest  it  again.  Hence  safety  is  a  secondary  consideration 
with  the  business  man. 


174  OFFICE  TRAINING  AND  STANDARDS 

The  yield  on  the  investment.  Third  comes  the  yield  on 
the  investment.  Anybody  can  get  2%  at  a  bank;  some  banks 
pay  3%  and  even  4%.  High-grade  bonds  can  be  bought  to 
yield  from  3%  to  8%;  stocks  yield  from  5%  to  25%.  The 
higher  the  yield  the  less  the  safety;  but  the  treasurer  watches 
the  stock  market  very,  very  closely,  and  if  an  opportunity  comes 
along  to  buy  a  stock  paying  8%  to  15%  with  a  good  market, 
he  buys  the  stock,  first  making  sure  that  the  security  to  be 
purchased  has  a  good  market  so  that  it  may  be  easily  sold  if 
found  necessary. 

Or  he  may  get  a  chance  to  buy  a  bond  yielding  8%  to  10%. 
Some  concerns  prefer  to  buy  bonds  instead  of  stocks,  because 
the  market  value  of  bonds  varies  very  slightly  compared  with 
the  violent  changes  in  stock  prices,  and  usually  bonds  can 
be  sold  for  very  nearly  what  was  paid  for  them.  This  is  all 
a  matter  of  judgment,  and  the  treasurer  must  be  on  the  job 
every  minute  of  the  day. 

If  the  company  owns  real  estate  and  buildings,  the  treasurer 
has  still  further  duties.  He  sees  that  the  taxes  are  paid  when 
they're  due,  the  rents  collected  if  there  are  tenants,  repairs 
made  where  necessary,  and  attends  to  the  making  of  improve- 
ments if  desirable. 

How  this  chapter  can  help  you.  Although  the  functions 
of  the  treasurer's  office  have  been  described  rather  fully  in  this 
lesson,  the  object  is  not  to  teach  you  how  to  become  the  treasurer 
of  a  big  corporation  right  away,  but  to  show  you  the  meaning 
back  of  all  your  work,  which  may  include  making  out  checks 
and  deposit  slips,  bills  and  drafts,  inspecting,  recording,  or 
filling  in  various  kinds  of  blank  papers  such  as  notes,  mortgages, 
deeds,  leases,  stocks,  bonds,  contracts,  insurance  pohcies,  and 
commercial  drafts,  all  or  many  of  which  are  or  will  be  used  by 
the  concern  which  employs  you. 

If  you  are  able  to  appreciate  fully  the  ultimate  effect 
of  your  work,  you  are  able  to  perform  it  much  more  carefully 
and  intelligently  than  if  you  are  simply  "working."  Further- 
more, in  an  emergency,  your  knowledge  of  financial  matters 
might  become  of  valuable  assistance  to  your  firm  and  thereby 
to  yourself  also. 


THE  TREASURER'S  OFFICE  175 

FINANCIAL  STANDARDS 

The  work  of  the  treasurer's  office 

1.  The  treasurer  supervises  the  money  matters  and  is  responsible  for  the 
funds  of  his  company. 

2.  The  term  "funds"  covers  all  forms  of  money,  including  checks,  notes, 
drafts,  bank  deposits,  loans,  stocks,  and  bonds. 

3.  Many  of  the  treasurer's  duties  may  be  delegated  to  others. 

4.  The  four  nrincinaLxiu^t^jes  of  the  treasurer  are  the  provision  of  funds 
for  carrying  on  the  businees,  the  care  of  and  respon!?ibility  for  the  company's 
funds,  representing  the  company  in  dealing  with  the  bank,  and  the  care  of  the 
company's  property. 

5.  Nearly  all  firms  pay  their  bills  by  check. 

6.  All  checks  of  the  company  are  usually  signed  by  two  persons,  of  whom 
the  treasurer  may  be  one. 

7.  The  treasurer  watches  collections  very  closely,  and  is  usually  the  final 
authority  on  the  action  to  be  taken  with  bad  accounts. 

8.  "Surplus  funds"  signifies  money  which  is  not  being  used  or  is  not  likely 
to  be  used  in  the  near  future. 

FINANCIAL  STANDARDS 

Elementary  principles  of  finance 

1.  Capital  for  new  ventures  is  usually  provided  by  the  sale  of  stocks 
and  bonds. 

2.  Bank  loans  are  made  ordinarily  for  temporary  purposes  only. 

3.  A  bond  is  a  note  under  seal,  and  usually  runs  for  a  term  of  j'ears. 

4.  A  bank  loan  may  be  made  on  demand,  or  it  may  run  for  30,  60,  or 
90  days,  but  seldom  longer  than  four  or  six  months. 

5.  Loans  which  run  for  a  specified  period  are  called  time  loans. 

6.  Call  loans  must  be  paid  the  day  they  are  called  for. 

7.  A  note  payable  on  demand  is  due  as  soon  as  the  demand  is  made. 

8.  A  note  dated  on  Sunday  is  void  in  some  states. 

9.  If  a  note  falls  due  on  Sunday,  it  is  payable  either  on  Saturday  or 
Monday  according  to  the  state  law. 

10.  You  can  obtain  cash  on  a  note  before  it  is  due  by  discounting  it  at 
the  bank. 

11.  If  partial  payments  are  made  on  a  note,  they  should  be  noted  on  the 
back  of  the  note. 

12.  If  a  note  is  not  returned  when  paid,  it  might  be  collected  a  second 
time  if  it  were  in  the  hands  of  a  bona  fide  holder. 

13.  The  legal  rate  of  interest  is  6%  usually,  but  the  laws  of  some  states 
permit  higher  rates. 

14.  Usury  is  charging  a  higher  rate  of  interest  than  the  state  law  permits. 

15.  In  some  states  the  interest  is  forfeited  if  usury  is  practiced. 

16.  In  some  states  the  principal  and  interest  are  forfeited  by  usury. 

17.  In  some  states  there  are  no  usury  laws  and  no  penalty  for  usury. 


176  OFFICE  TRAINING  AND  STANDARDS 

18.  Bank  loans  are  made  either  on  collateral  or  some  other  security. 

19.  Collateral  means  notes,  contracts,  stocks  or  bonds  deposited  with  the 
bank  to  secure  loans. 

20.  On  collateral  loans  only  one  signature  is  required. 

21.  On  loans  without  collateral  two  or  more  signatures  are  often  required. 

22.  The  signer  of  a  note  is  called  the  maker. 

23.  The  indorser  of  a  note  does  not  sign  his  name  on  the  face  of  the  note, 
but  on  the  back. 

24.  If  two  persons  sign  a  note,  each  is  held  responsible  for  the  full  amount. 

25.  If,  however,  one  man  signs  the  note  and  another  man  indorses  it,  the 
indorser  is  responsible  only  in  case  the  maker  does  not  pay. 

26.  Each  additional  indorser  on  a  note  is  responsible  only  in  case  the 
maker  or  the  preceding  indorser  fails  to  pa5\ 

27.  A  note  signed  by  a  firm  may  be  collected  from  either  partner. 

28.  A  note  signed  by  a  minor  cannot  be  enforced. 

29.  A  man  who  cannot  write  can  sign  a  note  by  making  his  mark. 

30.  A  note  given  by  a  man  who  cannot  write  should  be  witnessed. 

31.  If  a  man  carelessly  signs  a  note  which  he  thinks  is  some  other  paper, 
he  is  liable. 

32.  A  note  written  with  pencil  on  a  scrap  of  paper  is  good. 

33.  A  note  obtained  through  forgery  cannot  be  collected,  even  if  it  is  in 
the  hands  of  an  innocent  purchaser. 

34.  If  neither  interest  nor  principal  is  paid  for  several  years,  the  note  may 
be  outlawed. 

35.  The  time  for  outlawing  a  note  varies  in  different  sections  according 
to  the  state  laws. 

36.  If  an  unpaid  note  is  secured,  it  is  as  good  as  before  it  was  due. 

FINANCIAL  STANDARDS 

What  you  can  do  with  checks 

1.  A  check  is  an  order  on  a  bank  to  pay  out  money. 

2.  The  one  who  signs  the  check  is  called  the  maker  or  drawer. 

3.  The  one  to  whom  the  check  is  payable  is  called  the  payee. 

4.  Checks  are  usually  made  out  on  regular  printed  forms,  but  they  may 
be  written  on  any  kind  of  paper  if  a  blank  check  is  not  handy. 

5.  Checks  written  in  lead  pencil  are  good,  but  it  is  safer  to  use  ink. 

6.  Before  writing  the  check,  fill  in  the  stub. 

7.  In  writing  the  date  on  a  check,  use  the  name  of  the  month  instead  of 
the  number. 

8.  A  check  payable  to  bearer  could  be  cashed  by  anyone  holding  it. 
If  lost,  the  finder  could  cash  it. 

9.  The  same  is  true  of  a  check  with  the  payee  left  blank. 

10.  You  should  never  write  a  check  payable  to  the  bearer. 

11.  Make  your  check  payable  to  cash  if  you  wish  to  draw  money  from 
your  own  account. 


THE  TREASURER'S  OFFICE  177 

12.  The  amount  is  stated  in  two  places,  once  in  figures,  and  once  in 
writing. 

13.  Make  your  figures  plain,  and  see  that  they  agree  with  the  written 
amount. 

14.  If  the  written  amount  does  not  agree  with  the  figures,  the  writing  is 
considered  correct. 

15.  Write  the  amount  plainly  and  carefully  so  that  it  cannot  be  changed 
in  any  way,  shape  or  manner. 

16.  Do  not  change  the  amount,  if  you  make  an  error.    Write  a  new  check. 

17.  If  you  write  a  check  with  gross  carelessness  and  it  is  raised,  you  lose. 

18.  A  check  protector  will  help  to  prevent  altering  the  amount.  Large 
firms  and  banks  always  use  them. 

19.  Some  check  protectors  perforate  the  check;  others  penetrate  the 
paper;  others  use  an  indelible  ink.  Colored  checks  on  prepared  paper  aid 
in  detecting  erasures  or  alterations. 

20.  Write  your  signature  plainly. 

21.  Write  your  signature  the  same  way  on  all  checks. 

22.  After  writing  a  check  see  that  it  agrees  with  the  stub  in  every  way. 

23.  Forgery  is  the  alteration  of  any  written  instrument  without  the 
authority  of  the  maker  of  that  instrument.  It  is  a  serious  crime,  and  is  always 
heavily  punished. 

24.  If  your  signature  is  successfully  forged  the  bank  would  be  the  loser. 

25.  A  check  payable  to  a  person  must  be  indorsed  by  that  person  before 
the  bank  will  pay  the  check. 

26.  The  payee  indorses  a  check  by  signing  his  name  on  the  back  of  the 
check,  exactly  as  it  appears  on  the  face  of  the  check. 

27.  The  proper  way  to  indorse  a  check  is  to  write  your  name  on  the  back 
across  the  left  end. 

28.  If  other  names  are  indorsed  on  the  back  when  you  receive  the  check, 
indorse  your  name  below  the  other  indorsements. 

29.  It  is  wise  not  to  indorse  a  check  until  you  are  ready  to  dispose  of  it. 

30.  The  safest  way  to  indorse  checks  is  to  write  the  words:  "Pay  to  the 
order  of  Albert  Wallace,"  across  the  left  end  of  the  check  on  the  back,  and 
then  sign  your  name.     This  is  an  indorsement  in  full. 

31.  The  bank  holds  indorsers  of  checks  liable  just  as  indorsers  of  notes 
are  liable. 

32.  You  can  escape  this  liability  by  writing  "without  recourse"  above 
your  indorsement.    This  is  called  a  qualified  indorsement. 

33.  If  indorsed  to  "John  Smith  for  deposit,"  it  is  a  restricted  indorsement. 

34.  If  indorsed  "Pay  to  John  Smith"  it  is  a  limited  indorsement. 

35.  You  should  deposit  all  checks  or  cash  them  within  24  hours  after 
you  receive  them. 

36.  If  you  hold  checks  longer  than  24  hours  you  will  be  the  loser  in  case 
of  the  failure  of  the  bank  or  the  drawer. 

37.  You  may  hold  the  check  as  long  as  you  please  if  you  are  wiUing  to 
take  the  chances  of  losing. 


178  OFFICE  TRAINING  AND  STANDARDS 

38.  A  check  cannot  be  cashed  before  the  date,  if  it  is  dated  ahead. 

39.  If  a  check  is  dated  Sunday  it  can  be  cashed  on  Monday. 

40.  If  the  date  is  omitted  it  can  be  cashed  whenever  it  is  presented. 

41.  You  can  cash  a  check  in  a  strange  bank  if  you  have  credentials  to 
identify  j'ou  to  the  bank. 

42.  If  a  man  who  knows  you  will  o.k.  your  signature,  j^ou  can  cash  a  check 
wherever  his  signature  is  known. 

43.  A  bank  cannot  refuse  to  pay  a  check  if  the  maker  of  the  check  has 
sufficient  funds  on  deposit  in  the  bank. 

44.  If,  however,  the  maker  has  ordered  the  bank  to  "stop  payment"  on 
the  check,  the  bank  will  refuse  to  pay  it. 

45.  If  the  maker's  account  is  overdrawn  or  there  are  not  sufficient  funds 
on  deposit,  the  bank  will  refuse  to  pay  the  check. 

46.  It  is  not  a  crime  to  draw  a  check  on  a  bank  when  you  are  overdrawn, 
but  it  is  bad  business,  and  in  some  states  illegal. 

47.  It  is  fraud  to  draw  a  check  on  a  bank  where  you  never  had  any  deposit. 

48.  If  a  check  is  stolen  and  cashed,  the  man  from  whom  it  was  stolen 
would  not  be  the  loser. 

49.  If  you  indorse  a  check  that  is  protested  you  are  responsible. 

50.  If  j^ou  indorse  a  forged  check  and  cash  it  you  are  responsible. 

51.  If  the  bank  cashes  the  check  on  a  forged  indorsement  the  bank  is 
the  loser. 

52.  Each  month  the  bank  renders  a  statement  of  your  account,  showing 
deposits  made,  checks  paid,  and  the  balance.  Your  canceled  checks  are  returned 
to  you  at  the  same  time. 

53.  A  canceled  check,  when  returned,  bears  the  indorsement  of  the  payee 
and  should  be  saved  as  a  receipt  for  the  payment. 

54.  Personal  checks  are  very  satisfactory  for  making  remittances,  since 
they  are  easy  to  draw,  easy  to  send,  and  the  canceled  check  is  a  receipt. 

55.  For  out-of-town  remittances,  however,  many  banks  charge  exchange 
on  personal  checks. 

56.  It  is  well,  therefore,  in  sending  or  receiving  out-of-town  remittances,  to 
use  a  check  upon  a  New  York  bank. 

57.  Nearly  every  bank  has  connections,  either  directly  or  indirectly 
through  other  banks,  with  some  New  York  bank.  Your  bank  can  therefore 
ordinarily  accommodate  you  with  a  "New  York  draft,"  as  it  is  called. 

58.  Another  advantage  in  using  bank  drafts  for  out-of-touTi  remittances 
is  the  avoidance  of  any  possible  delay  in  holding  up  an  order  until  the  check 
is  collected. 

59.  A  certified  check  is  a  personal  check  which  the  bank  has  certified.  It 
is  good  for  the  amount  for  which  it  is  certified. 

60.  In  dealing,  therefore,  with  anyone  whose  credit  or  character  may  not 
be  good,  or  who  is  a  stranger  to  you,  you  are  justified  in  asking  him  to  give 
you  a  certified  check. 

61.  The  maker  of  a  certified  check  cannot  have  payment  stopped  on  that 
check  without  an  order  from  the  court. 


THE  TREASURER'S  OFFICE  179 

FINANCIAL  STANDARDS 

Partnerships  and  corporations 

1.  A  partnership  is  an  arrangement  by  which  two  or  more  persons  may 
work  together  for  their  mutual  profit. 

2.  Nearly  all  partnerships  are  or  should  be  based  upon  a  written  agree- 
ment between  the  partners,  stating  exactly  what  each  partner  agrees  to  do  and 
what  he  expects  the  other  partners  to  do. 

3.  The  partnership  agreement  should  therefore  be  carefully  drawn, 
preferably  by  an  attorney. 

4.  The  partnership  agreement  usually  states  who  the  partners  are,  the 
nature  of  the  business,  each  partner's  duties  in  that  business,  what  each  partner 
agrees  to  put  in  and  take  out  of  the  business,  and  how  the  partnership  shall  be 
terminated. 

5.  Regardless,  however,  of  the  agreement,  there  are  certain  laws  affecting 
partnerships  which  must  be  considered. 

6.  The  outstanding  feature  of  a  partnership  is  the  unlimited  personal 
liability  of  each  partner  for  the  debts  of  the  firm,  and  responsibility  for  the 
acts  of  all  the  other  partners. 

7.  If  the  firm  fails,  each  member  is  individually  liable  for  the  entire 
debts  of  the  firm. 

8.  Each  partner  may  ordinarily  make  contracts  binding  all  the  other 
partners,  even  though  he  acts  against  their  wishes. 

9.  It  is  wise,  therefore,  to  be  extremely  careful  in  choosing  partners,  to 
see  that  those  you  choose  are  trustworthy  in  every  way. 

10.  A  partner  may  withdraw  from  a  firm  at  any  time,  but  his  withdrawal 
does  not  release  him  in  any  way  from  his  liability  for  the  acts  and  debts  of  the 
partnership  up  to  the  time  of  his  withdrawal. 

11.  A  partnership  is  dissolved  by  death,  the  lunacy,  the  insolvency,  or  the 
withdrawal  of  a  member,  or  by  the  mutual  agreement  of  the  partners. 

12.  Usually  when  a  partner  withdraws  from  a  firm  of  three  or  more 
members,  the  remaining  members  form  a  new  partnership. 

13.  If  a  partner  withdraws,  the  fact  should  be  published,  and  notice  sent 
to  all  interested  persons,  in  order  to  relieve  him  of  liability  for  subsequent  acts 
of  the  firm;  otherwise,  he  may  find  himself  some  day  in  a  rather  embarrassing 
situation. 

14.  In  fact,  any  change  in  a  partnership  should  at  once  be  published  and 
notice  sent  to  all  interested  persons. 

15.  Upon  the  death  of  a  partner,  the  other  members  of  the  firm  have  the 
sole  right,  in  the  absence  of  agreement  to  the  contrary  or  otherwise,  to  wind  up 
the  business. 

16.  In  the  absence  of  any  prior  agreement  to  the  contrary  the  heirs  of  a 
deceased  partner  cannot  enter  the  firm  and  manage  this  interest  without  the 
consent  of  the  surviving  partners. 

17.  A  partner  cannot  dispose  of  his  interest  in  the  partnership  by  will. 
He  can,  however,  dispose  of  the  proceeds  of  his  interest  after  the  affairs  of  the 
partnership  have  been  settled. 


180  OFFICE  TRAINING  AND  STANDARDS 

18.  A  corporation  is  an  artificial  arrangement  created  by  law,  under  which 
three  or  more  persons  may  associate  themselves  together  to  carry  on  a  business. 

19.  A  corporation  receives  a  charter  from  the  state,  granting  certain 
powers  to  the  corporation. 

20.  No  corporation  can  exceed  the  powers  granted  in  its  charter. 

21.  The  by-laws  of  a  corporation  arc  the  rules  and  regulations  by  which 
the  corporation  conducts  its  business. 

22.  The  important  feature  of  a  corporation  is  the  fact  that,  except  under 
special  circumstances,  the  stockholders  are  not  liable  for  the  debts  of  the 
corporation. 

23.  The  stockholder  of  a  bank  is  ordinarily  liable  for  twice  the  amount  of 
his  stock. 

24.  That  is,  if  he  owns  10  shares  of  a  par  value  of  $100,  he  is  liable  not 
only  for  the  par  value  of  his  stock,  $1,000,  but  also  for  an  additional  $1,000, 
or  $2,000  in  all. 

25.  This  does  not  mean  that  if  he  paid  $1,000  for  his  stock,  he  will  have 
to  pay  $2,000  in  case  the  bank  fails.  It  simply  means  that  he  may  lose  the 
$1,000  already  paid  in,  and  is  liable  for  an  additional  $1,000. 

26.  A  stockholder  in  any  other  corporation  who  owns  stock  that  is  not 
"full  paid  "  is  liable  only  for  the  par  value  of  his  stock  less  the  amount  "  paid  in." 

27.  "Full  paid"  stock  is  stock  which  has  been  issued  and  paid  for  at  its 
full  par  value. 

28.  The  par  value  of  a  stock  is  its  face  value — the  amount  printed  on  the 
face  of  the  stock  certificate. 

29.  The  par  value  of  a  stock  has  nothing  to  do  with  its  actual  value. 

30.  A  stock  may  have  a  par  value  of  $100  and  be  worth  only  $23. 

31.  The  capital  stock  of  a  corporation  is  divided  into  shares. 

32.  The  stockholder  of  a  corporation  has  one  vote  for  each  share  of  stock 
he  owns,  unless  he  owns  non-voting  stock. 

33.  Certificates  of  stock  are  negotiable,  and  a  stockholder  may  sell  any 
or  all  of  his  stock  to  anyone  who  is  willing  to  buy  it. 

34.  A  corporation  is  managed  through  a  board  of  directors,  who  may  be 
elected  by  the  stockholders  at  the  annual  meeting. 

35.  The  directors  may  authorize  one  of  their  number,  usually  the  president, 
to  act  for  them,  and  to  manage  the  business  of  the  corporation  subject  to  their 
approval. 

36.  A  stockholder,  therefore,  has  absolutely  nothing  to  do  with  the 
business  of  the  corporation  unless  he  is  an  officer,  or  a  member  of  a  board  of 
directors,  or  owns  the  controlling  vote,  or  is  employed  by  the  corporation.  He 
has  no  power  or  authority  whatever,  except  a  vote  at  the  annual  meeting. 

37.  The  business  of  a  corporation  can  continue  regardless  of  the  death  of 
any    stockholder. 

38.  In  addition  to  the  capital  stock  some  corporations  issue  bonds,  which 
are  notes  under  seal,  and  are  usually  secured  by  mortgages. 

39.  A  bondholder  is  therefore  a  creditor  of  the  corporation,  since  the 
corporation  owes  him  moncv- 


THE  TREASURER'S  OFFICE  181 

40.  The  stockholder  is  an  owner  in  the  corporation,  cince  he  owns  shares 
of  the  capital  stock. 

41.  The  bondholder  does  not  have  any  vote. 

42.  The  difference  between  bonds  and  stock  is  that  bonds  are  an  obligation 
of  the  corporation  and  must  be  paid  at  maturity,  while  shares  of  stock  are 
simply  evidences  of  ownership. 

43.  When  the  bonds  mature,  if  they  are  not  paid,  the  bondholders  can 
foreclose  on  the  security,  just  as  the  holder  of  a  mortgage  can  foreclose  if  the 
interest  is  not  paid. 

44.  The  only  way  a  stockholder  can  get  his  money  back  is  by  selhng  his 

stock. 

45.  Another  difference  between  bonds  and  stock  is  that  the  mterest  on 
bonds  must  be  paid,  while  dividends  on  stock  are  not  paid  unless  they  are 
earned,  and  not  then  unless  the  directors  declare  the  dividends. 

46.  If  the  interest  is  not  paid,  the  bondholders  can  foreclose. 

47.  Evidently  then,  bonds,  to  be  worth  anything,  must  have  some  security 
back  of  them. 

48.  The  security  back  of  the  bonds  may  be  the  property  of  the  company, 
or  the  income  of  the  company,  or  simply  the  promise  of  the  company. 

49.  Bonds  secured  by  property  are  called  mortgage  bonds;  those  secured 
by  income  are  called  income  bonds;  those  secured  by  promises  are  called 
debenture  bonds  or  sometimes  simply  notes. 

50.  The  interest  on  bonds  must  be  paid  before  the  dividends  on  stock  are 
declared.  , 

51.  Sometimes  a  corporation  issues  two  or  more  kinds  of  stock.  One 
kind  is  called  preferred  stock;  the  other,  common  stock. 

52.  Preferred  stock  is  usually  preferred  both  as  to  assets  and  dividends; 
that  is,  dividends  must  be  paid  on  the  preferred  stock  before  anything  is  paid 
on  the  common  stock. 

53.  If  a  corporation  winds  up  its  business  and  dissolves,  the  bondholders 
get  paid  first,  then  the  general  creditors,  then  the  preferred  stockholders,  and 
the  common  stock  gets  what  is  left. 

54.  Very  often  the  common  stock  carries  voting  power,  and  the  preferred 

doesn't.  .  . 

55.  If  a  stockholder  loses  his  certificate  he  can  get  a  duplicate  by  promismg 
to  make  good  any  loss  caused  by  the  lost  stock  showing  up. 

56.  If  the  stock  turns  up  in  the  hands  of  an  innocent  holder,  the  corporation 
would  probably  be  compelled  to  recognize  it. 

57.  In  some  states  the  corporation  laws  are  not  so  rigid  as  in  others.  They 
allow  corporations  greater  powers  at  less  cost  and  with  less  supervision.  Al- 
though it  is  easier  to  incorporate  in  these  states,  there  is  greater  opportunity 
for  fraud. 

58.  A  corporation  can  do  business  in  any  state,  regardless  of  the  state  in 
which  it  is  incorporated.  It  is,  of  course,  subject  to  the  laws  of  the  statein 
which  it  does  business,  and  must  also  comply  with  the  laws  of  the  state  in  which 
it  is  incorporated. 


182  OFFICE  TRAINING  AND  STANDARDS 

FINANCIAL  STANDARDS 

Insurance 

1.  You  can  insure  against  death,  fire,  theft,  accident,  ill  health,  burglary, 
tornado,  loss  of  business,  law  suits,  and  almost  anything  that  is  liable  to  affect 
you  or  your  family,  j^our  business,  or  your  property. 

2.  To  take  out  insurance  on  anything  you  must  make  application  to 
the  insurance  company,  giving  whatever  information  is  required. 

3.  If  the  insurance  company  accepts  your  application,  it  will  issue  a 
policy  to  you  for  the  amount  of  the  insurance. 

4.  An  insurance  policy  is  a  contract  between  you  and  the  insurance 
company.  You  agree  to  pay  the  premiums,  and  the  company  agrees  to  pay 
you  the  insurance  in  case  of  loss. 

5.  An  insurance  premium  is  what  you  pay  to  the  insurance  company 
for  the  insurance.    Premiums  are  paid  regularly,  usually  once  a  year. 

6.  The  amount  for  which  the  company  insures  you  or  your  property  is 
called  "the  face  of  the  policy." 

7.  The  amount  of  the  premium  depends  largely  on  the  nature  and 
extent  of  the  risk. 

8.  Some  "risks"  cannot  be  insured  at  all. 

9.  The  cost  of  life  insurance  is  comparatively  high,  since  if  you  die  you 
are  a  total  loss  to  the  insurance  company. 

10.  Fire  insurance,  on  the  other  hand,  is  comparatively  inexpensive, 
since  the  loss  may  be  very  slight,  and  the  insurance  company  pays  only  for 
the  actual  damage. 

11.  You  may  insure  j'our  life  or  the  life  of  someone  else,  provided  the 
insurance  company  is  satisfied  that  your  interest  in  the  other  person  is  sincere. 

12.  You  cannot  insure  the  life  of  anyone  in  whom  you  have  no  interest. 

13.  A  creditor,  however,  can  have  the  life  insured  of  a  man  who  owes 
him  money. 

14.  Ordinarily  you  may  have  your  life  or  property  insured  in  favor  of 
anyone  you  choose. 

15.  In  case  of  death  by  suicide  the  company  will  pay  the  insurance  if  the 
policy  has  been  in  force  for  a  certain  time,  usually  one  or  two  years. 

16.  The  insurance  company  will  not,  however,  pay  insurance  for  the 
death  of  a  person  killed  while  committing  a  crime  or  as  punishment  for  a  crime. 

17.  If  the  insured  enters  the  naval  or  military  service,  in  time  of  war,  the 
company  will  adjust  the  premium. 

18.  Untrue  statements  in  the  application  for  insurance  may  render  the 
policy  void,  depending  on  their  nature  and  the  company's  rules. 

19.  If  the  wrong  age  is  stated,  the  insurance  is  not  usually  affected,  except 
that  the  company  will  probably  require  some  adjustment  in  the  premiums. 

20.  The  premium  for  a  fire  insurance  policy  would  be  higher  for  a  wooden 
building  than  for  a  brick  one. 

21.  A  brick  building  beside  a  railroad  track  might  cost  more  to  insure 
than  the  same  building  near  a  lake. 

22.  Some  locations  are  so  dangerous  that  the  buildings  cannot  be  insured. 


THE  TREASURER'S  OFFICE  183 

23.  The  owner  of  a  powder  mill  would  probably  have  difficulty  in  getting 
insurance  on  his  building.  He  might  also  find  it  difficult  to  get  his  own  life 
insured. 

24.  Insurance  rates  in  the  city  are  lower  than  in  the  country  because  the 
fire  protection  is  better. 

25.  The  more  fireproof  the  building  the  lower  the  rate  of  insurance. 

26.  The  higher  the  building  the  greater  the  risk  and  the  higher  the  rate. 

27.  The  business  handling  explosives  or  combustibles  must  pay  a  higher 
rate. 

28.  If  you  do  not  comply  with  the  insurance  rules,  you  may  find  that  you 
cannot  collect  the  insurance. 

29.  If  alterations  are  made  in  the  building  the  company  should  be  notified. 

30.  In  case  the  surrounding  buildings  are  changed  the  company  should 
be  notified. 

31.  In  case  a  new  member  is  admitted  to  a  partnership  the  policies  should 
be  changed  accordingly. 

32.  If  the  property  is  sold  the  company  should  be  asked  to  transfer  the 
insurance. 

33.  Two  or  more  persons  can  get  insurance  on  the  same  property  if  they 
have  an  insurable  interest. 

34.  The  company  always  reserves  the  right  to  replace  the  lost  property 
instead  of  paying  the  face  of  the  policy. 

35.  The  insurance  is  usually  void  if  the  property  is  vacated  without 
permission  from  the  insurance  company. 

36.  Statistics  are  said  to  show  that  the  farmer  is  more  liable  to  accident 
than  is  the  traveling  man. 

37.  The  employee  in  a  machine  shop  is  more  liable  to  accident  than  the 
office  worker. 

38.  Pianists  insure  their  fingers  against  injury. 

39.  Vocalists  insure  their  voices  against  injury. 

40.  Farmers  insure  their  crops  against  hail. 

41.  Merchants  should  insure  their  business  against  bad  debts. 

42.  Autoists  insure  their  cars  against  theft,  fire,  collision,  and  property 


43.  Cashiers  insure  their  employers  against  dishonesty. 

44.  Fruit  growers  insure  crops  against  frost. 

45.  Factories  insure  against  accidents  to  their  employees. 

46.  Business  men  insure  against  business  depression. 

47.  Compulsory  insurance  against  sickness,  accident,  and  old  age  is  now 
enforced  in  many  states. 

48.  Always  read  your  insurance  policies  carefully.    If  they  contain  any- 
thing you  don't  understand,  ask  the  company  to  explain. 

49.  Do  not  take  anything  for  granted.    Make  sure  that  everything  is  as 
it  should  be. 

50.  Insurance  policies  should  be  kept  in  a  safe  place  where  they  cannot 
be  lost,  stolen,  or  destroyed. 


184  OFFICE  TRAINING   AND  STANDARDS 

STANDARD  QUESTIONS 

The  work  of  the  treasurer's  office 

1 .  Why  does  a  business  concern  have  to  have  a  treasurer? 

2.  What  are  the  four  principal  duties  of  the  treasurer? 

3.  What  is  the  most  important  duty  of  the  treasurer  in  your  opinion? 
Why? 

4.  Name  the  treasurers  of  three  different  concerns  and  tell  what  each 
one  does,  as  far  as  you  know. 

5.  What  is  meant  by  the  word  "funds"? 

6.  Are  express  money  orders  funds?    Why  or  why  not? 

7.  What  is  currency? 

8.  Are  express  money  orders  currency?    Why  or  why  not? 

9.  Does  every  treasurer  look  after  every  bit  of  the  work  of  his  office? 
If  not,  who  does? 

10.  In  concerns  where  the  treasurer  delegates  his  work  to  others,  how  does 
he  "keep  in  touch"  with  the  way  things  are  going? 

11.  How  do  most  firms  pay  their  bills?    Why? 

12.  Who  signs  the  company's  checks?    Why? 

13.  How  does  the  treasurer  watch  collections? 

14.  What  is  meant  by  the  term  "surplus  funds"? 

15.  What  does  the  treasurer  have  to  do  with  the  surplus  funds? 

STANDARD  QUESTIONS 

Elementary  principles  of  finance 

1.  Is  it  ever  a  good  plan  for  a  prosperous  business  to  borrow  money? 

2.  Is  it  ever  a  good  plan  for  an  individual  to  spend  more  than  his  income 
and  borrow  money  to  meet  the  deficit? 

3.  What  is  the  commonest  form  of  business  paper  which  is  used  as 
evidence  of  a  loan  or  of  a  payment  due  in  the  future? 

4.  How  does  the  government  borrow  money? 

5.  How  does  the  individual  borrow  money? 

6.  Does  the  government  always  pay  interest  on  its  notes? 

7.  Does  an  individual  always  pay  interest  on  his  notes? 

8.  Does  a  bank  ahvaj's  pay  interest  on  its  notes? 

9.  What  is  the  danger  of  lending  money  on  a  verbal  promise  to  pay? 

10.  Why  are  notes  of  individuals  or  corporations  sometimes  held  in 
preference  to  cash? 

11.  If  you  were  borrowing  money  on  February  15,  would  you  prefer  to 
have  the  note  read  payable  in  30  days  or  1  month?    Why? 

12.  As  a  rule,  which  will  allow  the  longer  time  for  payment,  notes  due 
in  GO  days  or  in  2  months?    Why? 

13.  When  is  a  note  payable  if  it  falls  due  on  Sunday? 

14.  Is  a  note  legal  if  it  is  dated  on  Sunday? 

15.  Is  an  unpaid  note  as  good  after  maturity  as  before? 

16.  A  steals  a  note  from  B  and  sells  it  to  C.    Does  C  have  a  good  title? 


THE  TREASURER'S  OFFICE  185 

17.  A  note  is  drawn  payable  to  H.  A.  Bliss.    How  can  Mr.  Bliss  transfer 
it  without  becoming  liable  for  its  payment? 

18.  How  should  a  negotiable  note  be  worded? 

19.  How  should  a  non-negotiable  note  be  worded? 

20.  How  should  a  time  note  be  worded? 

21.  How  should  a  joint  note  be  worded? 

22.  How  should  a  demand  note  be  worded? 

23.  How  should  a  non-interest-bearing  note  be  worded? 

24.  How  should  a  compound  interest-bearing  note  be  worded? 

25.  When  does  a  non-interest-bearing  note  draw  interest? 

26.  Why  should  the  time  and  place  of  payment  be  stated  in  the  note? 

27.  Suppose  value  was  not  received  by  the  maker;  is  the  note  legal? 

28.  In  a  joint  note,  how  may  either  signer  be  made  liable  for  the  entire 
amount? 

29.  How  may  cash  be  obtained  on  a  note  before  it  is  due? 

30.  How  is  the  date  of  maturity  computed? 

31.  How  is  the  note  indorsed  in  blank? 

32.  How  is  the  note  indorsed  in  full? 

33.  How  is  a  restricted  indorsement  made? 

34.  How  are  partial  payment  indorsements  made? 

35.  How  does  the  maker  of  a  note  sign  his  name  when  he  cannot  write? 

36.  What  is  the  usual  legal  rate  of  interest? 

37.  What  is  the  penalty  for  usury? 

38.  What  is  meant  by  call  loans? 

39.  What  is  a  collateral  loan? 

40.  How  many  signers  are  required  on  the  note  for  a  collateral  loan?  Why? 

41.  How  is  capital  for  new  ventures  usually  provided?    Why? 

42.  What  is  a  bond? 

43.  What  is  a  mortgage? 

44.  What  is  a  time  loan? 

45.  How  soon  must  time  loans  be  paid?     call  loans?     demand  loans? 
collateral  loans? 

46.  When  are  indorsers  of  notes  Hable? 

47.  When  is  a  note  outlawed? 

48.  Are  bank  loans  ever  made  for  permanent  purposes?    If  so,  for  what 
purposes?     If  not,  why  not? 

49.  Who  is  the  maker  of  a  note?    the  indorser?    the  payee? 

50.  How  long  do  bank  loans  usually  run? 

STANDARD  QUESTIONS 

The  uses  of  checks 

1.  What  proportion  of  business  is  transacted  withchecks? 

2.  What  are  some  of  the  commercial  advantages  in  the  use  of  checks? 

3.  How  would  you  open  a  checking  account  at  a  bank? 

4.  What  does  it  mean  when  your  account  is  overdrawn? 


186  OFFICE  TRAINING   AND  STANDARDS 

5.  Should  checks  ever  be  written  with  a  pencil? 

6.  Must  checks  be  written  on  the  blank  forms  furnished  by  the  banks? 

7.  As  a  matter  of  convenience  to  your  customers,  could  you  draw  a  check 
on  the  bank  where  he  does  business? 

8.  Why  are  checks  usually  printed  on  colored  paper? 

9.  Why  should  an  exact  account  of  the  checks  issued  be  kept  on  the 
stubs  of  the  check  book? 

10.  Wliy  should  the  canceled  checks  be  saved  when  returned? 

11.  What  devices  are  used  to  prevent  the  raising  of  checks? 

12.  In  writing  a  check  what  cautions  are  necessary  to  prevent  fraud? 

13.  How  would  you  write  a  check  for  eighty-five  cents? 

14.  How  would  you  write  a  check  if  you  wanted  to  draw  money  for  your 
own  account? 

15.  Is  a  check  good  if  dated  on  Sunday? 

16.  Will  the  bank  pay  a  check  if  it  is  dated  a  month  ahead? 

17.  Is  a  check  good  if  the  date  is  omitted? 

18.  Can  you  cash  a  check  after  the  maker  has  died? 

19.  Is  it  criminal  to  draw  a  check  on  a  bank  where  you  have  no  money 
on  deposit? 

20.  What  is  the  difference  between  a  personal  check  and  a  certified  check? 

21.  What  is  the  difference  between  a  cashier's  check  and  a  bank  check? 

22.  How  can  the  payment  of  a  check  be  stopped? 

23.  You  are  sending  a  check  through  the  mail  to  John  Smith,  Chicago. 
How  will  you  prevent  the  check  from  falling  into  the  hands  of  the  wrong  Smith? 

24.  How  can  you  cash  a  check  at  a  bank  in  a  city  where  you  are  an  entire 
stranger? 

25.  How  can  you  cash  a  check  at  a  bank  where  you  are  a  stranger,  if  you 
have  a  friend  who  is  acquainted  at  the  bank  but  who  cannot  go  with  you  to 
the  bank  for  the  purpose  of  identifying  you? 

26.  If  a  forger  raised  a  check  which  you  have  written  and  succeeds  in 
getting  it  cashed,  who  would  be  the  loser? 

27.  If  your  signature  were  forged  and  the  check  cashed  by  your  bank, 
who  would  be  the  loser? 

28.  Where  must  indorsements  be  made  on  a  check? 

29.  How  are  indorsements  made  in  blank?    In  full? 

30.  How  would  you  make  a  qualified  indorsement  on  a  check? 

31.  How  would  you  endorse  a  check  which  you  wish  to  deposit  in  a  bank 
to  the  credit  of  another  man? 

32.  If  a  check  is  indorsed  in  blank,  how  can  you  legally  make  it  payable 
to  the  order  of  Henry  Smith? 

33.  Why  should  you  never  indorse  a  check  in  blank  unless  you  are  going 
to  cash  it  at  once? 

34.  What  are  the  advantages  and  disadvantages  in  the  payment  of 
accounts  with  checks? 

35.  Would  it  be  safe  to  sign  a  check  before  the  amount  or  the  name  of  the 
payee  is  filled  in?    If  so,  when?    If  not,  why  not? 


THE  TREASURER'S  OFFICE  187 

STANDARD  QUESTIONS 

Partnerships  and  corporations 

1.  What  is  the  difference  between  a  partnership  and  a  corporation? 

2.  Can  you  tell  a  partnership  from  a  corporation  by  the  name? 

3.  What  is  the  most  advisable  step  to  take  in  entering  into  a  partnership? 
Why? 

4.  What  is  a  partnership  agreement,  and  what  does  it  contain? 

5.  Who  should  draw  up  the  partnership  agreement? 

6.  Under  what  conditions  is  each  partner  individually  responsible  for 
the  debts  of  the  partnership? 

7.  Is  a  contract  made  by  any  partner  binding  on  the  others? 

8.  Why  is  it  wise  to  be  extremely  careful  in  choosing  partners? 

9.  When  may  a  partner  withdraw  from  a  partnership? 

10.  How  much  liability  attaches  to  a  retired  partner? 

11.  In  what  four  ways  may  a  partnership  be  dissolved? 

12.  What  steps  should  be  taken  by  a  retiring  partner  to  relieve  himself 
of  further  responsibility? 

13.  What  is  the  object  of  publishing  changes  in  partnerships? 

14.  If  a  partner  dies,  what  becomes  of  the  business? 

15.  What  rights  in  the  partnership,  if  any,  have  the  heirs  of  a  deceased 
partner? 

16.  Can  a  partner  sell  his  interest  in  a  partnership  or  dispose  of  it  by  will? 

17.  What  is  a  corporation? 

18.  How  many  persons  does  it  take  to  form  a  corporation? 

19.  What  is  a  corporation  charter? 

20.  What  are  by-laws? 

21.  Are  the  stockholders  of  a  corporation  liable  for  the  debts  of  the 
corporation? 

22.  What  is  the  liability  of  a  man  who  owns  stock  in  a  bank? 

23.  What  do  you  mean  by  "full-paid"  stock? 

24.  What  is  meant  by  the  "par  value"  of  stock? 

25.  How  is  the  capital  stock  of  a  corporation  divided? 

26.  Can  a  stockholder  vote? 

27.  Can  you  sell  stock  certificates? 

28.  How  is  a  corporation  managed? 

29.  How  much  has  a  stockholder  to  say  about  the  business? 

30.  What  becomes  of  a  corporation  if  one  of  the  stockholders  dies? 

31.  Does  the  sale  of  stock  to  pay  a  stockholder's  debts  affect  the  standing 
of  the  corporation?    Why  or  why  not? 

32.  What  is  the  difference  between  a  bondholder  and  a  stockholder? 

33.  To  what  extent  are  bondholders  liable  for  the  debts  of  a  corporation? 

34.  Does  a  bondholder  have  a  vote? 

35.  Which  would  you  rather  be,  a  bondholder  or  a  stockholder?     Why? 

36.  Suppose  the  corporation  does  not  pay  its  bonds  when  they  mature. 
What  may  happen? 

37.  How  does  a  bondholder  get  his  money  back? 


168  OFFICE  TRAINING  AND  STANDARDS 

38.  How  can  a  stockholder  get  his  money  back? 

39.  What  may  happen  if  the  corporation  does  not  pay  the  interest  on 
its  bonds? 

40.  Why  should  bonds  have  some  security  back  of  them? 

41.  What  three  kinds  of  security  may  bonds  have  back  of  them? 

42.  What  are  the  three  kind  of  bonds  called? 

43.  How  many  kinds  of  capital  stock  are  there? 

44.  What  is  preferred  stock? 

45.  If  a  corporation  dissolves,  what  becomes  of  the  assets? 

46.  If  you  own  stock  in  a  corporation  and  lose  your  stock  certificate, 
can  you  get  another? 

47.  Are  the  corporation  laws  the  same  in  every  state? 

48.  If  not,  what  is  the  nature  of  the  differences? 

49.  Is  a  corporation  obliged  to  do  business  in  the  same  state  in  which  it 
is  incorporated? 

50.  Why  are  corporations  which  belong  in  one  state  often  organized  under 
the  laws  of  another  state? 

STANDARD  QUESTIONS 

Insurance 

1.  What  are  some  of  the  things  that  can  be  insured? 

2.  In  what  respects  is  an  insurance  policy  a  contract? 

3.  What  is  the  face  of  a  policy? 

4.  What  is  the  premium? 

5.  Is  the  cost  of  life  insurance  low  comparatively  or  high?    Why? 

6.  What  determines  the  amount  of  the  premium  on  a  life  insurance 
policy? 

7.  Is  it  better  to  insure  at  an  early  age  or  wait  till  you  are  older? 

8.  Will  the  insurance  company  pay  the  insurance  if  the  insured  person 
commits  suicide? 

9.  If  the  insured  is  killed  in  war,  can  the  policy  be  collected? 

10.  Can  the  policy  be  collected  if  the  insured  person  is  killed  while  com- 
mitting a  crime? 

11.  What  effect  will  there  be  on  the  policy  if  the  insured  reports  his  age 
incorrectly? 

12.  Can  you  insure  the  life  of  anybody  beside  yourself?    If  not,  why? 
If  so,  under  what  conditions? 

13.  How  is  it  possible  for  insurance  companies  to  pay  large  amounts 
when  they  receive  small  premiums? 

14.  Is  fire  insurance  expensive  or  inexpensive?    Why? 

15.  Are  insurance  rates  lower  in  the  city  or  in  the  country?    Why? 

16.  Would  you  pay  a  higher  premium  on  a  frame  building  or  on  a  cement 
or  brick  one?  Why? 

17.  Is  a  four-story  brick  building  a  greater  risk  than  a  one-story  building? 
On  which  would  the  premium  be  higher? 


THE  TREASURER'S  OFFICE  189 

18.  Are  there  any  buildings,  do  you  suppose,  which  cannot  be  insured  at 
all?    If  so,  why? 

19.  What  ought  you  to  do  if  you  make  alterations  on  property  that  is 
insured?     If  you  neglect  this,  what  may  the  consequences  be? 

20.  What  effect  does  it  have  on  the  policy  if  the  property  is  sold?  altered? 
vacated? 

21.  Can  more  than  one  person  insure  the  same  property? 

22.  In  case  of  entire  loss,  does  the  company  always  pay  the  face  of  the 
policy? 

23.  What  are  eight  different  kinds  of  accidents  against  which  you  can 
insure  yourself? 

24.  Is  it  safe  to  keep  your  insurance  policies  in  your  desk  at  home?    Why 
or  why  not? 

25.  Can  you  think  of  a  better  place? 

STANDARD  QUESTIONS 

Some  questions  the  treasurer  has  to  answer 

1.  What  is  the  financial  center  of  the  world? 

2.  What  is  the  financial  center  of  the  United  States? 

3.  What  is  the  largest  bank  in  the  world? 

4.  What  is  the  largest  bank  in  the  United  States? 

5.  Are  banks  a  necessity  to  modern  business?    Why? 

6.  How  are  national  banks  different  from  state  banks? 

7.  How  are  private  banks  different  from  trust  companies? 

8.  How  are  postal  savings  banks  different  from  savings  banks? 

9.  What  is  the  clearing  house  and  what  part  does  it  play  in  business? 

10.  Why  are  heavy  fines  imposed  in  the  clearing  house  for  tardiness  and 
inaccuracy? 

11.  What  are  safe-deposit  vaults? 

12.  What  is  the  difference  between  bank  drafts  and  checks? 

13.  How  do  checks  differ  from  sight  drafts? 

14.  How  do  sight  drafts  differ  from  time  drafts? 

15.  Are  bank  drafts  money? 

16.  Are  bank  drafts  legal  tender? 

17.  Are  national  bank  notes  currency? 

18.  Do  national  bank  notes  draw  interest? 

19.  Are  national  bank  notes  good  if  the  bank  fails? 

20.  What  gives  security  to  national  bank  notes? 

21.  In  buying  a  bank  draft,  to  whose  order  would  you  have  it  made 
payable? 

22.  Are  bank  drafts  safer  than  personal  checks? 

23.  What  is  a  bill  of  exchange? 

24.  What  is  a  letter  of  credit? 

25.  What  is  a  travelers'  check?  . 

26.  What  is  meant  by  negotiable  paper? 


190  OFFICE  TRAINING  AND  STANDARDS 

27.  What  is  meant  by  collateral? 

28.  What  is  meant  by  bank  discount? 

29.  What  gives  paper  money  value? 

30.  Wliy  are  coins  more  desired  in  time  of  war  than  paper  money? 

STANDARD  EXERCISES 

Business  puzzles  involving  checks 

1.  A,  with  a  checking  account  of  $1,500,  gave  to  B  a  signed  check  in 
which  the  amount  was  left  blank,  with  the  understanding  that  B  was  to  pur- 
chase between  $300  and  $400  worth  of  goods  and  insert  in  the  check  the  amount 
of  the  purchase.  B  purchased  $1,000  worth  of  goods  from  C  and  filled  in  that 
amount.  In  case  A  could  not  prove  the  restrictions  placed  on  B,  how  much 
would  he  lose? 

2.  Mr.  Hay  gave  his  check  for  $200  payable  to  the  order  of  Mr.  Crawford. 
The  check  was  indorsed  in  blank  by  Mr.  Crawford  but  was  lost  before  it  could 
be  deposited  in  the  bank.  It  was  found  by  a  thief,  who  cashed  it  before  the 
payment  could  be  stopped.    Who  was  the  loser  and  how  much? 

3.  The  First  National  Bank  refused  payment  for  want  of  funds  of  a 
check  for  $200  drawn  on  it  by  Mr.  Roe  in  favor  of  Mr.  Drake.  Mr.  Drake 
did  not  present  the  check  for  payment  until  nearly  two  months  after  it  was 
drawn  and  did  not  give  the  drawee  the  notice  of  dishonor  until  about  two  weeks 
after  that.    From  whom  can  Mr.  Drake  collect?    Why? 

4.  Mr.  Baley  owed  Mr.  Avery  $25  and  gave  him  a  check.  When  Mr. 
Avery  presented  the  check  at  the  bank,  he  noticed  that  although  the  written 
amount  was  correct  the  figures  stated  only  25  cents.  How  much  could  Mr. 
Avery  get  on  the  check? 

5.  A  farmer  signed  a  check  for  $200  on  the  City  National  Bank,  where  he 
had  a  checking  account  for  $1,000.  The  bank  cashed  the  check,  not  knowing 
that  the  farmer  had  been  defrauded  by  a  windmill  agent  who  told  him  that  he 
was  signing  a  duplicate  contract  for  a  windmill  at  $100.  How  much  did  the 
farmer  lose?    Why? 

6.  Through  fraud,  Mr,  Day  secured  a  check  for  $500  from  Mr.  Lord. 
Mr.  Day  indorsed  the  check  in  full  to  Mr.  Hunter,  a  holder  in  due  course. 
The  bank  paid  the  check.    Who  was  the  loser  and  why? 

7.  Mr.  Bates,  who  has  a  checking  account  of  about  $12,000  writes 
check  for  $600  payable  to  the  order  of  Mr.  Woolson,  who  lives  in  the  same  town. 
Two  days  later,  while  the  check  was  still  in  the  possession  of  Mr.  Bates,  the 
bank  failed  and  paid  25  cents  on  the  dollar.  How  much  can  Mr.  Bates  collect 
from  Mr.  Gates  and  how  much  can  he  collect  from  the  bank? 

8.  Mr.  Green  wrote  a  check  for  $9,  which  was  easily  raised  to  $99  by 
a  forger.  It  finally  appeared  in  the  possession  of  Mr.  White,  who  was  an 
innocent  purchaser  for  value,  and  was  cashed  by  him  at  the  bank.  How  much 
would  Mr.  Green  lose?    Why? 

9.  A  forger  signed  George  P.  Brown's  name  so  perfectly  to  a  check  for 
$150  that  it  was  accepted  in  the  usual  course  of  business  by  Mr.  Black  and 


THE  TREASURER'S  OFFICE  191 

finally  cashed  by  him  at  the  bank.    Who  was  the  loser  and  how  much  was  the 
loss?    Why? 

10.  Mr.  Swan  was  accustomed  to  paying  his  rent  by  check  on  the  first 
of  each  month,  receiving  a  regular  rent  receipt.  On  the  first  of  May  the  land- 
lord presented  a  bill  for  two  months'  rent,  claiming  Mr.  Swan  had  never  paid 
the  rent  for  April.  Since  Mr.  Swan  can't  find  his  rent  receipt  for  April,  he  will 
have  to  pay  the  rent  again  unless  he  can  prove  he  did  pay  it.  How  can  he  do 
this? 

STANDARD  EXERCISES 

Partnership  and  corporations 

1.  Mr.  Fry  owned  $50,000,  Mr.  Gee  $25,000,  and  Mr.  Hay  $1,000 
interests  in  a  partnership  business  worth  $70,000.  The  firm  failed  and  all  of 
the  partners  were  bankrupt  except  Mr.  Hay.  If  the  debts  were  $38,000,  how 
much  would  Mr.  Hay  be  compelled  to  pay? 

2.  Mr.  Barr  and  Mr.  Baird  were  partners  when  Mr.  Barr  decided  to 
withdraw  from  the  firm.  Mr.  Baird  agreed  to  assume  the  firm  indebtedness 
of  $3,000  and  pay  Mr.  Barr  $10,000  for  his  share  in  business.  Before  any  of 
these  debts  were  paid,  Mr,  Baird  failed,  paying  off  only  10  cents  on  the  dollar 
How  much  would  Mr.  Barr  lose  through  the  failure? 

3.  When  Mr.  King  bought  an  interest  in  the  partnership  business  of 
Lloyd  and  May  the  firm  owed  $1,000  which  Mr.  King  did  not  agree  to  assume. 
Subsequently  Mr.  Lloyd  gave  a  note  in  the  name  of  the  new  firm  to  one  of  the 
creditors  for  $300.    Is  Mr.  King  liable  for  his  share  of  this  note? 

4.  Mr.  Blue  of  the  real  estate  of  Blue,  Brown  and  Company  bought  for 
the  firm  a  $10,000  property,  without  the  consent  of  his  partners.  It  proved  to 
be  a  bad  investment  and  was  sold  for  $7,000.  How  much  would  Mr.  Blue 
lose  in  case  the  three  partners  owned  equal  interests? 

5.  Mr.  Brown  and  Mr.  Babb  agreed  to  buy  4,500  bushels  of  wheat  and 
divide  it  according  to  the  amount  each  invested.  Mr.  Brown  furnished  $3,000 
and  Mr.  Babb  $1,500.  Mr.  Brown  sold  his  share  at  a  profit  of  10  cents  a 
bushel  and  Mr.  Babb  sold  at  a  loss  of  10  cents  a  bushel.  Is  this  a  partnership? 
How  much  did  each  gain  or  lose? 

6.  Mr.  Carr  and  Mr.  Crow  agreed  to  buy  and  sell  10,000  bushels  of  wheat, 
dividing  the  profits  or  losses  according  to  the  amount  each  invested.  Mr. 
Carr  invested  $3,000  and  Mr.  Crow  $9,000.  Mr.  Carr  sold  4,000  bushels  at  a 
loss  of  10%.  Mr.  Crow  sold  6,000  bushels  at  a  gain  of  10%.  How  much  did 
each  gain  or  lose?   Is  this  a  partnership? 

7.  Mr.  Coin  invested  $10,000  in  the  stock  of  a  national  bank  which  failed, 
paying  10  cents  on  the  dollar.    How  much  did  Mr.  Coin  lose? 

8.  Mr.  Dunn  invested  $10,000  in  a  joint  stock  company,  limited.  The 
firm  failed,  paying  10  cents  on  the  dollar.  How  much  of  his  investment  did 
Mr.  Dunn  lose? 

9.  When  a  mining  corporation  was  organized  Mr.  Elm  purchased  100 
shares  of  stock  for  $1,000  (par  value  $100).  The  company  failed,  owing  large 
sums  of  money.   How  much  must  Mr.  Elm  pay? 


192  OFFICE  TRAINING   AND  STANDARDS 

10.  Mr.  Fee  purchased  $1,000  worth  of  stock,  at  par,  in  a  newly  organized 
corporation,  stock  non-assessable  and  fully  paid.  The  company  failed,  owing 
$100,000.    How  much  does  Mr.  Fee  lose?    Why? 

STANDARD  EXERCISES 

Insurance 

1.  Mr.  Dale  insured  for  §5,000  a  property  worth  $4,000.  In  case  of  total 
loss,  how  much  can  Mr.  Dale  collect? 

2.  Under  the  80%  clause,  Mr.  Earl  insured  for  $4,000  his  house  valued 
at  $5,000.    How  much  can  he  collect  in  case  of  a  total  loss? 

3.  Mr.  Fry  insured  property  worth  $6,000  for  $4,000  under  the  average 
clause.  It  was  damaged  by  fire  to  the  extent  of  $120.  How  much  w-ill  the  com- 
pany pay? 

4.  Mr.  Gee  lent  Mr.  Maxwell  $2,000  and  took  a  mortgage  for  that 
amount  on  his  property  valued  at  $5,000.  As  an  additional  security  Gee 
insured  the  property  for  $4,000.  It  was  totally  destroyed  by  fire.  How  much 
can  Mr.  Gee  collect  from  the  company? 

5.  Mr.  Hoy  insured  for  $5,000  a  stock  of  goods  which  invoiced  at  $6,000, 
On  October  15  Hoy  moved  $500  worth  of  goods  to  an  adjacent  building.  On 
October  17  a  fire  completely  destroyed  both  buildings.  How  much  can  Mr. 
Hoy  collect? 

6.  Mr.  White  purchased  of  Mr.  Brown  for  $6,000  a  property  which  was 
insured  for  $5,000.  Mr.  WTiite,  knowing  that  the  place  was  insured,  paid  no 
further  attention  to  it.  The  property  was  destroyed  by  fire.  For  how  much 
is  the  company  liable,  either  to  WTiite  or  Mr.  Brown? 

7.  Mr.  Deo  insured  a  dwelling  house  for  $4,000,  and  at  the  time  he  made 
out  the  application  he  stated  that  there  was  no  other  building  within  100  feet 
of  this  property.  Subsequently  he  erected  a  frame  restaurant  building  within 
20  feet  of  his  house.  The  residence  was  destroyed  by  fire  but  through  no 
fault  of  the  restaurant.    How  much  would  the  company  pay  Deo? 

8.  Mr.  New  insured  a  stock  of  dry  goods  for  $8,000.  Subsequently  he 
removed  the  stock  into  a  building  which  was  much  better  protected  from  fire. 
How  much  can  he  collect  in  case  of  total  loss  by  fire? 

9.  Mr.  Ray  holds  a  mortgage  on  Mr.  Thompson's  property  for  $2,000. 
He  also  takes  out  a  fire  insurance  policy  of  $2,000  in  his  name  and  pays  the 
premium.  The  house  is  valued  at  $4,000.  If  the  house  burns  before  the 
mortgage  is  paid,  how  much  can  Mr.  Ray  collect?    Why? 

10.  In  case  Mr.  Thompson  pays  the  mortgage  before  the  fire,  how  much 
can  Ray  collect? 

11.  In  case  Mr.  Thompson  insured  his  house  for  full  value,  how  much 
would  the  company  pay  him?    Why? 

12.  In  case  Mr.  Thompson  took  out  a  $2,000  policy  in  favor  of  Mr.  Ray, 
how  much  could  Mr.  Ray  collect?    Why? 

13.  In  case  Mr.  Ray  takes  out  a  life  insurance  policy  on  Mr.  Thompson 
for  $2,000  and  continues  to  pay  the  premiums  until  Mr.  Thompson  dies,  although 


THE  TREASURER'S  OFFICE  193 

the  mortgage  has  been  paid,  how  much  can  Mr.  Ray  collect  from  the  insurance 
company  on  the  policy? 

14.  Mr.  Coe  insured  the  life  of  his  neighbor  Mr.  Matthews  for  S5,000, 
making  himself  the  beneficiary,  because  Matthews  did  not  have  the  money  at 
the  time  to  pay  the  premium.  Coe  continued  to  pay  the  premiums  until  the 
death  of  Matthews     How  much  can  he  collect? 

15.  When  INIr.  White  made  his  will  he  gave  his  daughter  all  of  a  $5,000 
life  insurance  policy  which  he  had  taken  out  payable  to  his  son.  How  much 
can  the  daughter  collect? 

16.  Mr.  Pry,  in  taking  out  a  life  insurance  policy  for  $5,000,  gave  his  age 
as  25  when  he  was  30.  How  much  will  the  company  pay  the  estate  in  case 
Pry  pays  the  premiums  until  his  death? 

17.  Mr.  Edwards  insured  his  life  for  $20,000  and  three  years  later  shot 
himself.     How  much  could  his  estate  collect?    Suppose  he  had  shot  himself 

n  three  days?    Suppose  he  was  shot  while  committing  a  burglary?    Suppose 
he  was  shot  as  a  spy? 

18.  In  making  out  his  application  for  a  life  insurance  policy  of  $5,000 
Mr.  Black  failed  to  state  that  tuberculosis  was  the  cause  of  his  mother's  death. 
He  passed  a  good  examination  but  afterward  died  of  consumption.  How  much 
will  the  company  pay  his  estate? 

19.  Mrs.  True  was  injured  in  a  railroad  accident.  As  the  injury  seemed 
very  slight  at  the  time,  she  settled  for  $50.  Later  she  was  out  of  work  for  three 
months  at  an  expense  of  $3,000  as  a  direct  result  of  the  injury.  How  much 
can  she  collect  from  the  company? 

20.  Mr.  Smith  shipped  by  boat  $4,000  worth  of  heavy  iron  castings. 
During  a  storm  it  became  necessary  to  jettison  the  iron  goods  in  order  to  save 
the  boat  and  the  balance  of  the  cargo.  If  the  boat  and  cargo  were  worth 
$400,000,  how  much  would  Mr.  Smith  lose? 

STANDARD  EXERCISES 

Some  additional  problems  the  treasurer  has  to  solve 

1.  Mr.  Clark  needed  $1,000  with  which  to  start  a  business.  He  could 
not  borrow  on  his  own  credit,  so  he  induced  his  uncle,  Mr.  Wadsworth,  to 
give  him  an  accommodation  note  for  $1,000  due  in  one  year  at  6%  interest, 
payable  to  Mr.  Clark's  order.  This  note  he  discounted  at  the  end  of  one 
month  at  the  City  National  Bank.  How  much  did  Clark  receive  from  the 
bank.    From  whom  would  the  bank  collect  and  how  much? 

2.  Mr.Amesgave  a  promissory  note  to  Mr.  Dennison  for  $600  payable  in 
3  months  at  6%.  One  month  after  date  the  note  was  paid  by  Ames  and  was 
not  returned.  Finally  Mr.  Dennison  lost  the  note  and  it  appeared  in  the 
hands  of  Butler,  an  innocent  purchaser  for  value.  How  could  Butler  collect 
from  Ames  and  for  how  much? 

3.  Brown  and  Black  signed  a  joint  note  for  $1,000  payable  in  one  year, 
at  5%  interest.  The  note  read:  "We  promise  to  pay."  In  case  Brown  fails, 
how  much  will  Black  be  compelled  to  pay? 


194  OFFICE  TRAINING  AND  STANDARDS 

4.  Mr.  John  Francis,  who  was  20  years  old,  gave  a  promissory  note  for 
$200  due  in  90  days  at  6%  to  Mr.  Brown,  value  received.  How  much  can 
Brown  collect  if  Francis  refuses  payment? 

5.  On  July  15  Mr.  WTiite  borrowed  $200  from  Mr.  Black  in  the  presence 
of  Mr.  Green  as  a  witness,  agreeing  to  pay  on  September  15  with  interest  at  6%. 
On  August  15  WTiite  and  Green  were  both  killed  in  a  railroad  accident.  How 
much  can  Black  recover  from  White's  estate? 

6.  Mr.,Barr  gave  his  note  to  Mr.  Lord  on  January  2,  1910,  for  $200 
payable  on  demand  at  6%  interest.  Barr  paid  the  interest  at  the  close  of  the 
first  and  second  years,  but  nothing  was  paid  on  the  principal.  Lord  brought 
suit  at  the  end  of  the  fifth  year  for  collection.  Barr  refused  payment,  stating 
that  the  note  was  outlawed,  as  the  statute  of  limitation  was  five  years  in  his 
state.    How  much  could  Lord  collect? 

7.  On  March  4  Mr.  Ames  obtained  through  fraud  from  Mr.  Bates  a 
negotiable  note  for  $400  due  in  four  months  at  6%.  Ames  immediately  dis- 
counted the  note  at  a  bank  at  5%.  Bates  refuses  payment  on  account  of  fraud. 
How  much  can  the  bank  collect  from  Bates?  How  much  did  the  bank  pay 
Ames? 

8.  Mr.  Brown  becomes  a  bona  fide  holder  for  value  of  a  promissory  note 
of  $500  payable  in  five  months  at  5%.  The  note  was  given  by  Mr.  Thomas  to 
Mr  Clark  without  consideration.  Mr.  Thomas  refused  payment  claiming 
that  there  was  no  consideration.  How  much  could  Mr.  Brown  collect  from 
Mr.  Thomas? 

9.  The  Crown  Piano  Company,  with  a  capital  of  $1,000,000  (shares 
$100  each),  declares  a  dividend  of  $125,000.  How  much  would  a  stockholder 
owning  120  shares  receive? 

10.  An  assessment  to  meet  a  loss  of  $25,000  is  levied  by  a  company  with  a 
capital  of  $500,000.  How  much  will  Mr.  Pool,  who  owns  500  shares  of  par 
value  $100,  be  required  to  pay? 

11.  Mr.  Cool  can  buy  some  stock  paying  5%  dividends  at  120  and  some 
others  paying  6%  at  150.    WTiich  is  the  better  investment? 

12.  Mr.  Holt  wishes  to  invest  enough  money  in  5%  bonds  at  par  to  insure 
his  daughter  an  income  of  $200  a  month.  How  many  $1,000  bonds  should 
he  purchase? 

13.  The  partnership  firm  of  White  and  Black  reorganized  as  a  corporation 
with  a  capital  of  $50,000  in  shares  of  $50  each.  White's  share  in  the  old  firm 
was  $12,500  and  Black's  $18,000.  How  many  shares  should  each  receive  and 
how  much  stock  would  remain  in  the  treasury? 

14.  Mr.  Ray  purchased  800  shares  of  C.  &  N.  W.  Ry.  stock  at  a  price 
which  would  net  him  5%  on  his  investment.  If  the  stock  pays  a  semiannual 
dividend  of  3%,  how  much  did  the  stock  cost  him  and  how  much  income  does 
he  receive  each  year? 

15.  Mr.  Bain  has  $5,500  to  invest  in  bonds  or  mortgages.  He  can  pur- 
chase a  4%  mortgage  at  par,  or  6%  bonds  at  125.  If  the  security  is  the  same 
in  both  cases,  which  should  he  buy?  Why?  What  is  the  difference  in  the 
income? 


CHAPTER  XIII 

THE  MANAGER'S  JOB 

SOME  office  workers  have  an  idea  that  the  manager  has 
an  easy  job.  He  may  come  down  to  the  office  at  nine 
o'clock  or  so,  read  his  morning  paper,  dictate  a  few  letters, 
talk  to  callers,  walk  around  the  office  once  or  twice,  take  two 
hours  for  lunch,  and  then  go  home,  sometimes  at  four  or  half- 
past  four  o'clock. 

The  employee  who  works  steadily  from  eight  until  half-past 
five  notices  all  this  and,  unless  he  has  done  some  accurate  think- 
ing, he  may  really  beheve  that  he  is  working  harder  than  his 
employer.  To  be  sure,  he  may  be  actually  doing  more  physical 
work  than  the  manager,  but  if  the  manager  did  very  much 
physical  work,  he  wouldn't  have  enough  time  to  do  the  work  he 
is  paid  to  do. 

When  the  "boss"  sits  at  his  desk  apparently  idle,  he  is  not 
really  day-dreaming.  On  the  contrary,  his  brain  is  probably 
working  busily,  considering  one  or  another  of  the  many  problems 
connected  with  the  office.  There  are  more  of  these  problems 
than  the  average  worker  in  the  office  realizes. 

Working  with  your  brains.  There's  a  very  interesting 
story  told  about  a  stockholder  in  the  Standard  Oil  Company 
whose  office  was  situated  directly  opposite  the  company's 
office.  This  stockholder  was  much  perturbed  to  see  one  of  the 
department  managers  of  the  oil  company,  who  was  drawing  a 
fairly  large  salary,  stand  with  his  hands  in  his  pockets,  gazing 
out  of  his  window  into  the  street  for  the  greater  part  of  his 
time,  day  after  day.  It  seemed  to  the  stockholder  that  there 
was  something  wrong:  this  highly  paid  man  was  loafing  on  the 
job,  and  the  stockholder  finally  decided  to  tell  the  president  of 
the  company  about  it.  He  did  tell  him.  Somehow  or  other 
the  president  didn't  get  excited  at  all.    He  merely  smiled. 

195 


196  OFFICE  TRAINING  AND  STANDARDS 

"Mr.  Rockwell,"  he  said,  addressing  the  stockholder,  "I 
sincerely  thank  you  for  the  interest  you  have  shown  in  the  main- 
tenance of  our  efficiency.  I  appreciate  the  fact  that  from  your 
window  Mr.  Rogers  appears  every  bit  as  idle  as  you  say. 

"But  from  your  window  it  is  impossible  for  you  to  see  what 
is  going  on  inside  Mr.  Rogers'  head.  It  would  be  highly  profit- 
able to  this  company  to  hire  a  dozen  other  men  like  him,  if  we 
could  get  them,  and  pay  them  salaries  as  large  as  we  pay  Mr. 
Rogers,  to  stand  with  their  hands  in  their  pockets,  looking  out 
of  their  windows  and  thinking  thoughts  as  valuable  as  those 
which  Mr.  Rogers  thinks." 

This  is  true  ptobably  of  most  managers:  when  they  are 
apparently  idle  they  are  busy  thinking  "valuable  thoughts." 
Just  as  soon  as  you  and  your  fellow  office  workers  appreciate  some 
of  the  many  knotty  problems  the  "boss"  is  up  against,  you  will 
begin  to  feel  keenly  your  responsibility  for  making  the  whole 
office  run  smoothly. 

One  very  important  problem.  In  our  lessons  thus  far  we 
have  studied  the  office  work  of  many  departments;  we  have 
seen  how  the  various  operations  are  carried  out;  and  we  have 
learned  the  relation  of  each  department  to  the  business  as  a 
whole.  One  important  problem  remains— that  of  harmonizing 
the  work  of  all  the  departments,  reducing  friction,  increasing 
production,  cutting  down  unnecessary  expenses  of  operation, 
and  at  the  same  time  securing  the  loyalty  of-  the  office  workers 
and  keeping  everybody  happy. 

Dealing  with  human  nature.  This  is-  the  manager's 
job,  and  it  is  a  big  job.  Not  only  does  he  have  to  deal 
with  machinery  and  equipment,  but  he  also  has  to  deal  with 
the  most  uncertain,  fluctuating,  changing  element  in  business- 
human  nature.  All  the  Uttle  disturbances,  the  petty  quarrels, 
the  differences  of  opinion,  the  variations  in  temperament  of  the 
different  workers,  the  natural  quickness  of  some,  the  laziness 
of  others,  the  thousand  and  one  component  facts  that  make 
up  the  modern  business  world— all  these  and  many  others,  some 
almost  unheard  of  and  unbelievable,  go  to  make  a  bigger  and 
harder  job  for  the  manager  than  the  work  of  perhaps  anybody 
else  in  the  office. 


OFFICE  PROBLEMS  I97 

When  machinery  squeaks  you  can  oil  it;  but  when  a  human 
organization  like  a  highly  complicated  business  office  squeaks, 
something  besides  oil  is  required  to  eliminate  imnecessary  friction 
and  get  it  running  smoothly  again. 

The  office  manager  as  an  engineer.  Four  factors,  then, 
the  office  manager  has  to  deal  with — labor,  materials,  equip- 
ment, and  orders.  The  office  is  like  the  hopper  of  a  machine 
into  which  the  orders  are  fed.  The  hopper  is  the  office;  the 
grindstones  are  the  equipment  of  the  office;  the  materials  make 
up  the  order;  the  office  force  turns  the  crank;  and  the  grist  is 
the  result;  the  office  manager  is  the  engineer,  with  the  job  of 
keeping  the  machine  oiled,  the  crank  turning  regularly  without 
stopping,  the  grindstones  always  the  proper  distance  apart,  and 
the  grist  uniformly  fine. 

Let's  see  how  he  handles  this  interesting  task. 

First  we'll  study  the  office  itself,  the  "physical"  office,  the 
building,  the  rooms,  the  desks,  and  the  equipment  necessary  for 
carrying  on  the  work.  Although  the  physical  characteristics  of 
each  office  must  depend  largely  upon  the  work  that  is  carried 
on,  nevertheless  every  office  has  features  that  are  similar  to 
every  other  office  and  many  of  the  principles  underlying  the 
work  are  very  much  alike. 

Planning  the  office  for  effective  work.  How  shall  the 
desks  and  other  office  equipment  be  arranged?  When  a  factory 
expert  lays  out  the  plan  for  his  building,  he  aims  to  have  the 
raw  material  come  in  at  one  place  and  pass  naturally  from  one 
machine  or  department  to  another  without  loss  of  time  or  motion. 
Exactly  the  same  reasoning  apphes  in  laying  out  an  office,  and 
it  is  called  the  ''straight  hne"  principle. 

The ''straight  line"  principle.  Imagine  if  you  can,  two 
different  water  pipes  running  from  one  water  barrel  to  another, 
one  pipe  crooked  and  twisted  and  bent,  the  other  pipe  absolutely 
straight.  Through  which  pipe  will  the  water  run  the  faster? 
Naturally  through  the  pipe  that  is  straight.  If  we  consider 
the  office  routine  as  the  "pipe"  through  which  the  orders  "run," 
we  can  easily  see  that  if  the  routine  "pipe"  is  straight,  the 
orders  will  go  through  the  office  much  more  quickly  than  if  the 
routine  "pipe"  is  crooked  and  bent.    That  is,  if  an  order  can 


198  OFFICE  TRAINING   AND  STANDARDS 

come  in  the  front  door  and  go  through  the  office  in  a  straight 
hne,  and  out  the  back  door,  it  will  not  take  as  long  as  it  would 
if  the  order  had  to  cross  the  office  back  and  forth  several  times 
and  then  perhaps  go  out  the  front  door  again. 

The  straight  line  principle  is  followed  so  that  there  will  be 
no  doubUng  back  of  an  order  from  the  time  it  enters  the  office 
until  it  is  filled  and  shipped.  On  a  diagram  of  the  office  the 
passage  of  work  from  desk  to  desk  should  form  a  straight  line. 
It  holds  true  in  a  small  office,  as  well  as  in  a  large  one,  that  all 
crossing  of  lines  and  turning  back  results  in  lost  motion  and  time. 

Unnecessary  expenses  hide  in  every  kink  or  crook.  Because 
an  office  operation  repeats  itself  over  and  over,  the  waste 
from  lost  time  is  evident  wherever  a  clerk  walks  10  feet  when 
the  errand  could  be  done  by  handing  a  paper  across  a  table. 
Once  these  kinks  are  straightened  out,  it  becomes  easier  to 
maintain  efficiency  and  to  correct  desk-to-desk  details. 

Desks,  therefore,  are  distributed  through  the  office  not  with 
a  view  solely  to  artistic  effect,  but  for  convenience,  as  well.  It 
helps  for  every  employee  to  keep  his  eyes  open  for  better  arrange- 
ment of  the  office.  If  you  notice,  for  instance,  that  your  work 
could  be  simplified  or  made  more  effective  if  your  desk  were 
moved  next  to  the  person  you  are  working  with,  don't  be  afraid 
to  suggest  the  change.  Every  wide-awake  manager  is  glad  to 
receive  sensible,  practical  suggestions  of  ways  to  increase  the 
effectiveness  of  his  office  routine. 

Suiting  the  desk  to  the  work.  Although  the  desks  and 
other  equipment  are  arranged  properly  with  respect  to  the 
routine,  it  may  be  that  the  equipment  itself  is  not  suited  to  the 
work  passing  over  it.  If  a  roll-top  desk  is  used,  perhaps  a  flat- 
top desk  would  serve  the  purpose  better,  particularly  if  the 
work  is  of  a  nature  requiring  especially  good  light  and  constant 
passing  of  letters  and  papers.  Or  perhaps  the  work  may  be  of  a 
character  that  could  be  most  effectively  handled  with  a  specially 
built  table.  All  these  considerations  and  many  others  are  part 
of  the  work  of  the  manager. 

The  inside  of  the  desk.  Some  managers  even  require  the 
insidcs  of  all  desks  to  be  arranged  according  to  a  standard  plan. 
There  is  a  good  reason  back  of  this:    if  you  are  unexpectedly 


FIGURE  67:  When  a  certain  office  manager  came  into  a  new  concern,  he  found 
the  office  arranged  like  this.  An  order  came  in  to  the  mail-opening  desk  and  from 
there  it  skipped  all  over  the  office.     Follow  the  arrows  and    see    where    it    went. 


a 


.9, 


a 


Han 


Sales 


)v '°T  T  X  X 

clerks  Correspondents 


bookkeepers 


Fi 

e 

a 


Stenoeraphers 

J  "U 


FIGURE  68:  He  decided  time  could  be  saved  by  a  rearrangement.  This  is  how 
the  office  looked  after  he  made  the  change.  The  order  now  goes  in  one  straight 
line  from  the  mail  opening  desk  to  the  credit  man,  the  bill  clerks,  and  the  factory. 

199 


FIGURE  69:  You  won't  waste  time 
fumbling  for  clips  and  pins  if  your  desk 
drawer  is  well  arranged  with  partitions. 


FIGURE  70:  The  middle  drawer  of 
this  desk  is  divided  into  small  compart- 
ments for  pins,  clips,  and  rubber  bands. 


FIGURE  71:  Hue  is  a  desk  that  is  made  up  of  three  interchangeable  units.  It 
can  be  shifted  with  very  little  difficulty  to  suit  almost  any  kind  of  work.  The 
drawers  arc  conveniently  arranged  for  filing,  and  the  stationery  racks  are  handy. 

200 


OFFICE  PROBLEMS  201 

absent,  someone  in  your  department  can  find  your  work  and 
give  it  the  necessary  attention.  This  manager  requires  all  un- 
finished business  to  be  placed  in  folders  clearly  marked.  Pens, 
penholders,  blotters,  pins,  clips,  pencils,  erasers,  rulers,  and  office 
forms  are  kept  in  their  assigned  compartments.  Some  desks 
have  a  deep  drawer  in  which  space  is  provided  for  fiUng  follow- 
up  matters.  In  case  you  work  with  a  great  many  blank  forms, 
the  center  drawer  may  be  used  for  special  appliances  and  the 
upper  right-  or  left-hand  drawer  for  the  forms,  or  a  special  cabinet 
near  your  desk  may  help. 

An  absolute  necessity.  The  most  perfect  routine  ever 
established  will  fall  short  of  its  possibiUties  if  the  office  manager 
has  not  provided  comfortable  working  conditions  for  his  em- 
ployees; he  cannot  hope  to  get  the  best  results  from  them.  No 
one  can  work  effectively  at  a  desk  if  the  room  is  so  cold  that  his 
fingers  are  numb,  or  if  the  fight  is  dim,  or  the  air  stuffy,  or  the 
surroundings  noisy. 

Good  light  is  an  important  requirement  for  effective  work. 
Daylight  is,  of  course,  the  best  possible  fight,  but  it  is  not  always 
available.  In  that  event  the  manager  has  to  choose  the  best 
kind  of  artificial  light  and  decorate  the  walls  in  light  colors  so  as 
to  conserve  whatever  light  there  is. 

There  is  also  the  question  of  ventilation,  which  the  manager 
must  decide,  and  of  heat  and  humidity.  A  reasonably  warm, 
moist,  well-ventilated  office  will  do  much  to  assure  the  comfort 
of  the  workers  and  to  maintain  their  efficiency  at  the  highest 
level  the  year  round. 

Muffling  the  office  noises.  Another  problem  that  may  be 
worrying  the  manager  is  how  to  muffle  the  office  noises.  Noise, 
as  has  been  proved,  is  one  cause  of  fatigue  and  it  therefore  lowers 
eflSciency.  Much  of  the  noise  of  a  large  office  is  caused  by 
talking.  Every  employee  can  easily  talk  in  low  tones  if  it  is 
necessary  to  talk  at  all.  It  is  easy  enough  to  reduce  the  noise 
made  by  office  machines  by  using  felt  cushions  for  typewriter 
rests  and  rubber  pads  for  desks  on  which  rubber  stamps  or 
numbering  machines  are  used.  These  are  only  a  few  of  the 
methods  that  will  help  reduce  office  noises.  Perhaps  you  can 
think  of  several  others. 


202  OFFICE  TRAINING  AND  STANDARDS 

The  greatest  problem  of  all.  There  still  remains  to  ,be 
considered  the  problem  of  handling  the  office  workers.  No 
matter  how  well  equipped  it  may  be,  an  office  is  worthless  with- 
out people  to  work  in  it.  Well-trained  employees  may  turn  out 
good  work  in  a  poorly  equipped  office — poorly  trained  em- 
ployees cannot  turn  out  good  work  even  in  an  office  that  is  per- 
fectly equipped  with  the  latest  office  devices. 

Hiring,  placing,  and  training  employees.  The  first  step 
to  take  in  building  up  a  capable  office  force  is,  of  course,  to  hire 
promising  applicants.  Concerns  which  do  not  ^dopt  careful 
methods  of  hiring,  placing,  and  training  employees  find  the 
number  of  withdrawals  unnecessarily  large,  causing  an  enormous 
expense,  since  it  has  been  estimated  that  it  costs  from  S50  to 
$150  to  "break  in"  a  new  worker.  Many  managers  use  carefully 
thought  out  tests  for  the  purpose  of  testing  mental  maturity, 
observation,  memory,  alertness,  accuracy,  speed,  and  general 
fitness  for  performing  certain  mental  and  physical  operations. 
Anyone  who  is  not  up  to  the  required  standard  is  rejected  as 
hopeless  for  the  work  required.  The  tests  also  show  just  what 
kind  of  work  each  appHcant's  training  and  abiUty  fit  him  for, 
and  help  to  lower  the  number  of  square  pegs  in  round  holes. 

After  an  employee  is  hired,  he  must  be  trained.  Many 
concerns  have  the  employee  who  is  leaving  show  the  work  to 
the  new  one,  but  the  more  progressive  office  managers  are  finding 
that  much  better  results  are  usually  obtained  by  the  use  of 
standard  practice  instructions. 

Standard  practice  instructions.  To  prepare  the  standard 
practice  instructions  each  job  in  the  office  is  thoroughly  analyzed. 
The  very  best  way  to  do  each  task  is  determined  upon  after 
careful  study,  and  then  clear  and  complete  instructions  for  doing 
the  task  in  that  way  are  written  down  in  full  detail.  All  the 
new  employee  has  to  do  at  first  is  to  read  and  become  familiar 
with  these  standard  practice  instructions. 

Having  mastered  the  details  of  the  work  as  written  out,  and 
learned  the  policies  and  reasons  for  doing  the  work  as  instructed, 
the  new  employee  is  ready  to  start  work.  Thus  the  first  day 
or  two  gives  the  new  worker  the  three  essential  points  necessary 
to  give  him  a  proper  start:    complete  instructions,  the  reasons 


JL 

jurfSi^ 

AN  ATTENTION  TEST 

Cross  the  2's  and  ring  the  3's  among  the  figures 

given  below;  the  time  allowed  is  two  minutes 

1  ^^  4    5    6    7    8    9    1  \^  4    5    6 

9    4    5   $  2^8    7    1    0  ^  0   4  ^s^^ 

01"i4   5-^av8409  ^6    7  fe 

5    4  ^1^  8    0   ^7    4(^5    9  'S^O 

1    4   @)  0    0    7   ^  %  8   4  ^^  1  (p  9 

3;>4    5   S^  7    8    9    0   f  \  7    5    0    I    8 

4    0    7    9  $)  ^  ^  §  D  0   4    5    8    1    7 

8    4    1  ^  8   ^  8  %^0    9  \^^6    4    8 

7,J>5    7\4    90(3^78@9    52. 

FIGURE  72:     One  concern  uses  this  test  to  measure  the  abihty  of  applicants.     It's 

extremely  simple,  of  course,  but  it  shows  how  well  you  can  concentrate  and  how 

quickly  j-^our  mind  works.     Suppose  you  get  some  one  to  time  you  while  you  take 

the  test — it  may  tell  you  how  well  you  can  follow  instructions. 

203 


In   this   drawer  are  paper, 

cards,  envelops,  and  other 

supplies   naturally   reached 

for  with  the  left  hand 


These  are  the  only  transient 
papers  about  the  desk.  The 
folder  in  the  executive's  left 
hand  contains  reports  relat- 
ing to  these  papers,  and  be- 
longs in  the  lower  right 
hand  drawer 


Folders  contain- 
ing reports  on 
work  in  process, 
dictation  arid 
house  notes 


Pencils    and 
rubber  stamps 


FIGURE  73:     The  executive  who  uses  this  cUsk  has  arran<j,<-a  it  so  that  his  -work- 
ing tools"  can  be  easily  reached.     The  kind  of  work  you  do  will,  of  course,  determine 
the  arrangement  of  your  desk  somewhat.     But  no  matter  what  the  work,  the  object 
always  is  to  have  an  efficient  arrangement  and  stick  to  it. 
204 


OFFICE  PROBLEMS  205 

back  of  those  instructions,  and  the  conduct  expected  of  him 
while  he  remains  an  employee  of  the  concern.  In  case  of  mis- 
understanding reference  is  quickly  made  to  the  instruction  sheets. 
Keeping  the  workers  contented.  After  the  employees  are 
hired  and  trained,  the  manager's  problem  is  to  keep  them  con- 
tented so  that  they  will  not  be  constantly  on  the  lookout  for  new 
positions.  Favorable  office  conditions  will  often  help;  recrea- 
tion rooms,  rest  rooms,  and  lunch  rooms  are  an  advantage  also. 
But  one  of  the  most  important  factors  in  keeping  employees  is 
reasonably  good  pay.  If  employees  are  paid  what  their  work 
is  worth  and  receive  increases  as  their  work  improves,  they  will 
more  than  likely  be  contented. 

About  the  only  way,  however,  to  estimate  what  office  workers 
are  worth  is  to  keep  a  careful  check  on  their  work,  and  there  are 
many  ways  of  doing  this,  such  as  counting  and  measuring, 
comparing  and  inspecting,  supervision  and  reports. 

Many  managers  stimulate  their  employees  to  better  work 
by  the  use  of  a  bonus  system;  a  reasonable  standard  of  attain- 
ment is  set — those  who  reach  the  standard  and  pass  it  receive 
more  money  than  those  who  don't. 

Ways  to  stimulate  ambition.  Nearly  every  manager  finds 
that  it  pays  to  give  his  office  workers  something  to  look  forward 
to.  If  they  see  no  prospects  ahead,  their  work  may  become  a 
dreary  grind.  But  if  there  are  better  jobs  waiting  for  them  when 
they  are  ready  for  the  jobs,  their  own  work  will  become  doubly 
interesting. 

For  this  reason  a  number  of  companies  fill  vacancies  by 
promotion  wherever  possible.  If  a  vacancy  is  filled  "from  the 
outside,"  the  old  employees  are  apt  to  feel  that  an  injustice  has 
been  done  them.  In  order  to  have  someone  ready  to  take  a 
position  if  made  vacant,  one  manager  has  an  understudy  in 
training  for  every  position.  This  prevents  disruption  of  the 
force  or  the  routine. 

Making  a  game  out  of  VAork.  Perhaps  the  hardest  prob- 
lem of  all  that  the  manager  has  to  tackle  is  to  make  a  game  out 
of  the  work— make  it  seem  like  play.  While  there  is,  to  be  sure, 
more  or  less  work  about  all  games,  still  this  does  not  prevent 
all  normal  human  beings  from  enjoying  them.     Business  is  a 


206  OFFICE  TRAINING  AND  STANDARDS 

game  of  intense  interest  in  which  the  fittest  survive  and  the 
weaklings  perish.  If  you  have  never  become  interested  in  this 
game  perhaps  you  have  not  had  sufficient  training.  You  don't 
expect  to  play  a  really  good  game  of  baseball  or  tennis  without 
some  preparation,  perseverance  and  perspiration.  Enter  all 
the  contests  you  can  and  throw  all  the  enthusiasm  you  possess 
into  the  game.  Even  if  you  don't  win  the  first  time,  you  will 
find  yourself  stronger  for  the  next  entry. 

You  do  not  know  how  fast  you  can  run  until  you  run  as  hard 
as  you  can  and  keep  on  running.  You  do  not  know  what  you 
can  do  in  business  until  you  get  interested  in  hard  work  and  do 
your  very  best.  You  may  even  be  surprised  at  your  own  accom- 
plishments when  you  once  find  yourself. 

Make  up  your  mind  you  are  going  to  reach  a  high  goal  and 
start  now.  Your  possibilities  are  what  you  make  them.  Some 
day  you  may  be  facing  the  very  same  problems  your  manager  is 
now  facing.  Your  abiUty  to  solve  those  problems  then  depends 
largely  on  the  way  you  play  the  game  now. 

OFFICE  STANDARDS 

The  office  from  the  manager's  desk 

1.  Although  the  manager  may  sometimes  appear  to  have  an  easy  job, 
he  is  usually  hard  at  work — with  his  brain. 

2.  Large  corporations  pay  large  salaries  to  men  and  women  who  work 
with  their  brains. 

3.  Poor  Richard  said:  "The  eye  of  the  master  does  more  work  than 
both  his  hands." 

4.  One  of  the  most  important  jobs  the  manager  has  is  to  harmonize  the 
work  of  each  department  with  that  of  every  other  department. 

5.  Since  every  office  has  certain  features  that  are  similar  to  every  other 
office,  many  of  the  principles  underlying  all  offices  are  alike. 

6.  The  office  manager  deals  with  four  factors— labor,  materials,  equip- 
ment, and  orders. 

7.  An  office,  like  a  factory,  should  be  laid  out  on  the  "straight  line" 
principle. 

8.  The  straight  line  principle  means  the  arrangement  of  desks  and 
equipment  so  that  there  will  be  no  "doubling  back"  of  an  order  from  the  time 
it  enters  the  office  until  it  is  filled  and  shipped. 

9.  Water  will  run  through  a  straight  pipe  faster  than  through  a  crooked 
one. 

10.  If  the  insides  of  all  the  desks  are  arranged  according  to  a  standard 
plan,  it  is  easier  for  a  substitute  to  take  up  the  work  where  it  was  left  off. 


OFFICE  PROBLEMS  207 

1 1 .  Comfortable  working  conditions  will  help  to  maintain  office  efficiency. 

12.  Effective  work  cannot  be  accomplished  if  the  light  is  poor. 

13.  Fresh  air  and  a  comfortably  warm  office  are  essentials  to  good  work. 

14.  Since  noise  causes  fatigue,  nearly  every  step  that  will  reduce  noise 
will  help  the  office  workers. 

15.  In  some  offices  the  noise  from  typewriters  and  other  machines  is 
reduced  by  placing  felt  or  rubber  pads  under  tlie  machines. 

16.  In  many  large  offices  all  the  typewriters  are  placed  in  one  room. 

17.  Unnecessary  talking  causes  a  great  deal  of  noise.  Everyone  can  do 
his  part  to  lessen  it.    Think  before  you  speak. 

18.  The  difference  between  good  work  and  bad  work  may  be  due  to  the 
difference  between  good  training  and  poor  training. 

19.  Well-trained  employees  may  be  able  to  turn  out  good  work  in  a 
poorly  equipped  office. 

20.  Poorly  trained  employees  cannot  turn  out  good  work  even  in  a 
perfectly  equipped  office. 

21.  The  cost  of  hiring,  placing,  and  training  employees  has  been  estimated 
at  from  $50  to  $150  for  each  new  worker. 

22.  If  workers  are  carefully  selected  before  they  are  hired,  they  will 
usually  prove  more  satisfactory  than  if  they  are  hired  without  regard  to  their 
qualifications  or  disqualifications  for  the  job. 

23.  Tests  are  used  to  determine  the  applicant's  mental  maturity,  observa- 
tion, memory,  alertness,  accuracy,  speed,  and  general  fitness  for  performing 
certain  mental  and  physical  operations. 

24.  The  tests  also  show  for  just  what  kind  of  work  each  applicant's 
training  and  ability  fit  him. 

25.  In  "breaking  in"  a  new  employee,  many  concerns  use  standard 
practice  instructions  in  preference  to  having  an  older  employee  do  the  teaching. 

26.  Standard  practice  instructions  show  the  very  best  way  to  perform 
each  operation  in  the  office. 

27.  Standard  practice  instructions  for  any  job  are  usually  prepared  only 
after  that  job  has  been  thoroughly  analyzed  and  carefully  studied. 

28.  The  advantage  in  using  standard  practice  instructions  in  training 
employees  is  that  they  give  the  worker  the  three  essential  points  necessary  for 
a  proper  start:  complete  instructions,  the  reasons  back  of  those  instructions, 
and  the  conduct  expected  of  him  while  he  remains  an  employee  of  the  concern. 

29.  The  manager  whose  employees  are  contented  will  not  need  to  worry 
about  their  leaving  him  for  better  positions  elsewhere. 

30.  Other  things  being  equal,  employees  will  usually  be  contented  if  they 
are  paid  what  their  work  is  worth. 

31.  To  find  out  what  an  employee  is  worth,  a  careful  check  must  be  kept 
on  his  work. 

32.  The  usual  methods  of  checking  work  are  counting  and  measuring, 
comparing  and  inspecting,  supervision  and  reports. 

33.  Some  companies  pay  bonuses  for  work  which  is  up  to  or  beyond  a 
reasonably  attainable  standard. 


208  OFFICE  TRAINING  AND  STANDARDS 

34.  Every  office  worker  is  or  should  be  looking  forward  to  the  job  ahead. 

35.  This  is  the  reason  why  many  companies  fill  vacancies  by  promotion 
wherever  possible. 

36.  Some  companies  have  an  "understudy"  in  training  for  every  position. 
Thus  someone  is  always  ready  to  take  the  next  job. 

37.  Business  is  a  game  of  intense  interest. 

38.  If  you  can  make  a  game  out  of  your  work,  it  will  seem  like  play. 

39.  You  do  not  know  how  fast  you  can  run  until  you  run  as  hard  as  you 
can  and  keep  on  running. 

40.  You  do  not  know  what  you  can  do  in  business  until  you  get  interested 
in  hard  work  and  do  your  very  best. 

41.  Make  up  your  mind  you  are  going  to  reach  a  high  goal  and  start  on 
your  way  right  now. 

42.  Your  ability  to  be  a  good  captain  of  your  team  depends  largely  on 
the  way  you  play  the  game  now. 

STANDARD  QUESTIONS 

The  office  from  the  manager's  desk 

1.  Should  the  office  manager  receive  a  lower  salary  than  the  other  workers 
if  he  works  at  the  office  fewer  hours  a  day?    Why  or  why  not? 

2.  What  does  the  manager  work  with  most,  his  hands  or  his  brain?   Why? 

3.  If  you  happened  to  see  the  office  manager  come  in  to  the  office  an 
hour  late  several  mornings  in  succession,  would  you  feel  that  you  had  a  right 
to  do  the  same?    Why  or  why  not? 

4.  What  are  several  of  the  office  manager's  knottiest  problems? 

5.  What  are  the  four  factors  the  office  manager  has  to  deal  with? 
Describe  each  one  briefly. 

6.  Are  any  two  offices  just  alike? 

7.  Is  there  anything  about  any  office  that  is  similar  to  every  other  office? 
If  so,  what? 

8.  W^hich,  if  either,  of  these  two  types  of  desk  is  better:  roll-top  or 
flat-top?  Give  your  reasons. 

9.  Should  the  office  manager  pay  any  attention  to  the  in  ides  of  the  desks? 
Why  or  why  not? 

10.  Is  it  wise  to  allow  every  worker  to  arrange  his  desk  as  he  thinks  best? 
Why  or  why  not? 

11.  Is  there  any  advantage  in  having  .■;  definite  place  for  all  unfinished 
work? 

12.  Have  comfortable  working  conditions  anything  to  do  with  the  effec- 
tiveness of  the  office? 

13.  Can  you  work  as  effectively  with  gas  light  as  with  day  light? 

14.  What  is  the  relation  of  fresh  air  to  good  work? 

15.  Does  noise  cause  fatigue?  How? 

16.  Can  office  noises  be  reduced?    How? 

17.  What  are  two  methods  used  to  subdue  the  noise  of  typewriters? 


OFFICE  PROBLEMS  209 

18.  How  can  every  worker  help  to  reduce  noises? 

19.  Which  would  you  rather  have,  a  poo  ly  equipped  office  with  well- 
trained  employees,  or  a  perfectly  equipped  office  with  poorly  trained  employees? 
Why? 

20.  Can  you  think  of  any  way  in  which  the  office  workers  can  help  the 

manager?    If  so,  how? 

STANDARD  QUESTIONS 

Office  appliances  and  labor-saving  devices 

1.  Has  the  introduction  of  labor-saving  devices  thrown  employees  out 

of  work? 

2.  How  has  the  introduction  of  office  machinery  affected  wages? 

3.  What  effect  has  it  had  on  the  work  of  the  office? 

4.  What  effect  has  it  had  on  the  opportunities  of  office  employees? 

5.  Explain  how  office  machinery  has  revolutionized  the  work  of  the 
business  office. 

6.  What  is  the  most  useful  machine  of  the  modern  office?    Why? 

7.  What  machine  brings  the  mail  to  the  office? 

8.  How  is  the  mail  opened  by  machinery? 

9.  To  what  machine  is  the  answer  dictated? 

10.  With  what  machine  is  it  wi'itten? 

11.  With  what  machine  may  it  be  signed?^ 

12.  With  what  machine  may  it  be  folded? 

13.  With  what  machine  may  it  be  sealed? 

14.  With  what  machine  may  it  be  stamped? 

15:  With  what  device  may  duplicate  orders  be  written? 

16.  What  machine  will  act  as  bookkeeper? 

17.  What  device  will  deliver  written  messages? 

18.  What  machine  will  write  a  message? 

19.  What  device  will  transmit  a  message? 

20.  What  machine  will  protect  from  fraud? 

21.  What  machine  will  count  coin? 

22.  What  machine  will  number  papers? 

23.  What  machine  will  date  papers? 

24.  What  machine  will  fasten  papers? 

25.  What  machine  will  keep  a  record  of  your  timo? 

26.  What  machine  will  sharpen  pencils? 

27.  What  machine  will  tie  up  packages? 

28.  What  machine  will  address  packages? 

29.  What  machine  will  deliver  packages? 

30.  What  machine  do  you  like  best  to  use?    Why? 

31.  Which  machine  do  you  most  dislike  to  use?    Why? 

32.  Which  machine  is  the  most  expensive?    Why? 

33.  Which  machine  is  the  greatest  labor-saver?    Why? 

34.  Which  machine  is  the  most  commonly  used?    Why? 


210  OFFICE  TRAINING   AND  STANDARDS 

35.  'What  is  the  difference  between  an  adding  machine  and  a  calculating 
machine? 

36.  What  is  the  difference  between  a  listing  machine  and  a  non-listing 
machine? 

37.  What  is  the  difference  between  the  mimeograph  and  the  muRigra  h? 
Name  several  ways  in  which  each  can  be  used. 

38.  WTiat  is  the  difference  between  the  dictograph  and  the  dictaphone? 

39.  What  is  the  difference  between  the  addressograph  and  the  signagraph? 

40.  What  is  the  difference  between  the  telephone  and  the  telautograph? 

41.  What  is  the  difference  between  the  stenotype  and  the  shortwriter? 

42.  Under  what  circumstances  can  a  shorthand-writing  machine  be  used 
to  advantage? 

43.  Under  what  circumstances  can  the  electric  pencil  be  used  to  advantage? 

44.  Under  what  circumstances  can  the  extra-sensitive  telephone  be  used 
to  advantage? 

45.  Under  what  circumstances  can  a  dictating  ma  hine  be  used  to  ad- 
vantage? 

46.  Under  what  circumstances  can  a  type  duplicator  be  used  to  advantage? 

47.  Under  what  circumstances  can  an  addressing  machine  be  used  to 
advantage? 

48.  Under  what  circumstances  can  mechanical  carriers  be  used  to  ad- 
vantage? 

49.  Give  some  good  general  rules  for  the  care  of  the  typewriter. 

50.  Is  it  a  good  thing  to  work  like  a  machine?    Why  or  why  not? 

STANDARD  QUESTIONS 

Office  layout 

1.  What  is  meant  by  the  layout  of  an  office? 

2.  What  is  meant  by  the  straight  line  principle  in  laying  out  an  office? 

3.  You've  probably  heard  the  axiom— "a  straight  line  is  the  shortest 
distance  from  one  point  to  another."  Could  you  apply  it  in  laying  ou  an 
office?    How? 

4.  What  considerations  should  govern  the  arrangement  of  desks? 

5.  How  should  desks  be  arranged  with  regard  to  aisles? 

6.  Would  it  be  economical  to  have  your  desk  placed  20  feet  away  from 
the  person  with  whom  you  are  working? 

7.  If  you  discovered  that  you  were  wasting  time  because  your  desk  was 
inconveniently  situated,  what  would  you  do  about  it? 

8.  In  one  office  a  clerk  gets  $3  a  day.  He  walks  20  feet  to  the  files  20 
times  a  day  and  it  takes  him  2  minutes  each  time.  How  much  money  would 
the  company  save  every  day  if  his  desk  were  moved  right  next  to  the  files? 
How  much  in  a  year? 

9.  How  near  to  the  worker  should  drinking  fountains  be  located? 

10.  Will  a  diagram  of  the  office  give  the  manager  any  indication  as  to 
whether  the  layout  is  effective  or  not?    If  so,  how? 


OFFICE  PROBLEMS  211 

STANDARD  QUESTIONS 

Hiring,  training,  and  holding  employees 

1.  What  does  it  cost  approximately  to  hire,  place,  and  train  a  new 
employee? 

2.  Is  it  necessary  to  use  a  good  deal  of  care  in  selecting  employees? 
Why  or  why  not? 

3.  How  does  the  employment  manager  decide  whether  the  applicant  is 
up  to  the  standard  required  for  the  position? 

4.  How  does  the  manager  decide  just  what  kind  of  work  each  employee 
is  best  fitted  for? 

5.  Name  several  methods  of  teaching  new  employees. 

6.  What  method  do  you  consider  most  effective?    Why? 

7.  What  are  standard  practise  instructions? 

8.  Write  out  standard  practise  instructions  for  some  operation  you  are 
familiar  with — e.g.,  knitting  a  sweater — playing  a  game— baking  a  cake- 
weeding  a  garden — sharpening  a  pencil. 

9.  What  are  the  three  essential  points  a  new  employee  should  know  in 
order  to  get  a  proper  start? 

10.  Are  most  managers  eager  to  keep  their  employees  contented?    Why 
or  why  not? 

11.  Why  is  it  advisable  to  hold  on  to  capable  employees  if  possible' 

12.  What  is  one  of  the  most  important  considerations  in  keep'ng  em- 
ployees contented? 

13.  How  is  it  possible  to  know  just  what  an  employee  is  worth? 

14.  Name  several  methods  of  checking  up  the  work  of  an  employee. 

15.  What  is  meant  by  a  bonus? 

16.  What  is  the  purpose  of  paying  a  bonus? 

17.  What  is  the  best  way,  in  your  opinion,  of  filling  vacancies?   Why? 

18.  Is  it  a  good  idea  to  have  an  understudy  in  training  for  every  position? 
Why  or  why  not? 

19.  Do  you  know  of  any  concern  that  does  welfare  work  among  its  em- 
ployees?   What  sort  of  welfare  work? 

20.  Why  does  a  company  carry  on  welfare  work? 

21.  What  influence  have  comfortable  working  conditions  on  keeping  the 
workers  contented? 

22.  Is  it  just  for  kindness'  sake  that  employers  are  interested  in  the  health 
of  their  employees? 

23.  Why  do  some  concerns  have  schools  for  their  employees? 

24.  How  can  they  afford  to  pay  f-alaries  to  employees  while  learning? 

25.  Why  do  some  employers  encourage  employees  to  purchase  stock  in 
the  company? 

STANDARD  EXERCISES 
Some  problems  in  office  efficiency 
1.    A  firm  employing  eight  addressing  typists  found  that  by  standard- 
izing the  work  and  using  the  block  form  of  address  they  gained  25%  in  efficiency. 


212  OFFICE  TRAINING   AND  STANDARDS 

How  much  would  the  same  improvement  save  a  firm  employing  12  typists  at 
$800  each  a  year? 

2.  If  the  average  distance  from  the  desks  to  the  drinking  fountain  is 
100  feet  and  it  requires  2  minutes  for  a  clerk  to  get  a  drink  and  return  to  his 
work,  how  much  time  will  2,000  clerks  lose  in  a  year  of  300  working  days  it 
they  make  an  average  of  5  trips  a  day? 

3.  At  an  average  of  25  cents  an  hour  how  much  money  would  be  saved 
in  10  years  by  placing  fountains  20  feet  from  each  clerk? 

4.  If  it  costs  SI 00  to  hire  and  instruct  a  clerk,  what  will  the  yearly 
expense  be  in  an  office  where  400  new  clerks  are  employed  every  year  to  main- 
tain a  working  force  of  200?  It  is  estimated  that  20%  of  the  force  is  changed 
by  death,  accident,  or  some  unavoidable  cause  and  should  not  be  charged  to 
labor  turnover  expense,  as  it  is  called. 

5.  A  clerk  opening  mail  found  that  by  standardizing  her  work  it  was 
possible  to  handle  300  letters  an  hour  instead  of  80  letters  an  hour  under  her 
former  methods.    What  is  the  percentage  of  improvement? 

6.  A  few  years  ago  41  operators  of  the  Curtis  Publishing  Company  pro- 
duced 48,000  square  inches  of  typewritten  matter  in  a  week  at  an  average 
weekly  wage  of  $9.    How  much  did  this  work  cost  for  each  1,000  square  inches? 

7.  After  adopting  a  standard,  27  operators  in  the  same  department 
produced  115,000  square  inches  and  were  paid  an  average  wage  of  $11  a  week. 
What  was  the  cost  for  each  1,000  square  inches? 

8.  What  was  the  percentage  of  increase  in  efficiency? 

9.  What  was  the  percentage  of  improvement  in  wages? 

10.  Two  typists  were  taken  from  a  noisy  general  office  and  placed  in  a 
quiet  room.  They  increased  their  output  100%.  What  saving  in  a  year  would 
be  effected  with  a  force  of  200  typists  at  an  average  salary  of  $18  a  week? 


CHAPTER  XIV 

OPPORTUNITIES  FOR  EMPLOYMENT 

EMPLOYERS  are  looking  for  hjgh-grade  help.  There  are 
more  really  good  jobs  open  right  now  than  there  are 
applicants  for  those  jobs.  Strange  though  it  sounds,  it 
is  the  truth.  And  one  of  the  purposes  of  these  lessons  has  been 
to  prepare  you  for  one  of  these  high-grade  jobs,  not  only  by  show- 
ing you  the  methods  others  are  using  to  succeed,  but  also  the 
way  to  approach  your  prospective  employer  in  order  to  make  a 
favorable  impression. 

When  you  apply  for  a  job,  you  are  a  salesman.  You  are 
selling  your  services,  and  in  order  to  sell  your  services  you  must 
find  someone  who  wants  the  particular  kind  of  services  you  have 
to  sell,  and  who  is  willing  to  pay  the  price  you  think  your  ser- 
vices are  worth. 

Taking  an  inventory  of  yourself.  Your  first  task  then  is 
to  find  out  who  wants  to  hire  you.  This  means  that  you  must 
analyze  yourself;  you  must  find  out,  if  possible,  just  what  work 
you  are  best  fitted  for  and  how  well  fitted  you  are  for  that  work. 
What  do  you  know?  How  much  are  you  worth?  Take  an 
inventory  of  your  stock  on  hand.  You  should  know  your  own 
personal  assets  and  liabihties  before  engaging  in  business  for 
yourself  or  others. 

It  is  not  necessary  to  publish  your  estimate  of  yourself; 
others  will  draw  their  own  conclusions  from  the  records  you  make. 
Repeat  this  inventory  occasionally.  Compare  your  estimates 
from  time  to  time  and  observe  whether  you  are  progressing  or 
retrogressing.  But  be  honest  with  yourself;  you  gain  nothing  by 
trying  to  deceive  yourself  as  to  the  facts.  Face  them  openly, 
and  see  where  you  can  improve  on  the  showing.  Mark  each 
question  on  the  basis  of  five  points  for  a  perfect  score,  or  100 
points  for  all  the  questions. 

213 


214  OFFICE  TRAINING   AND  STANDARDS 

SOME  PERSONAL  QUESTIONS 

1.  Am  I  physically  fit?    Am  I  up  to  the  standard  for  my  age  in  weight 
and  height? 

2.  Am  I  fond  of  out-door  recreation?    Do  I  excel  in  any  athletic  games? 

3.  Have  I  decided  on  my  vocation?  Am  I  doing  anything  that  is  directly 
preparing  me  for  my  life  work? 

4.  Am  I  neat  and  careful  in  my  work?  Do  I  give  enough  and  yet  not 
too  much  attention  to  my  personal  appearance? 

5.  Am  I  a  coward  physically  or  mentally?  Do  I  have  the  tenacity  and 
will-power  to  stick  to  my  work  and  face  difficulties? 

6.  Do  I  perform  my  mental  and  physical  work  to  the  extent  of  my 
possibilities?    Am  I  above  the  standard  in  my  line  of  work? 

7.  Am  I  a  shirker?  Am  I  interested  and  attentive  to  detail,  or  am  I 
looking  for  the  easy  job? 

8.  Am  I  punctual  in  all  my  work  and  appointments?  Have  I  attended 
school  or  kept  other  engagements  for  several  years  without  failure? 

9.  Am  I  a  knocker  or  a  grouch?  Am  I  as  cheerful  and  poUte  at  home  as 
I  am  with  strangers  or  in  business? 

10.  Do  I  choose  the  right  kind  of  associates?  Am  I  fond  of  gambling  or 
any  game  of  chance? 

11.  Do  I  enjoy  reading  good  books  or  magazines?  Am  I  interested  in  the 
things  that  have  made  others  successful? 

12.  Am  I  fond  of  music  or  art?  Do  I  have  a  hobby  which  may  be  of 
permanent  value? 

13.  Do  I  control  my  temper?    Am  I  invariably  courteous  to  others? 

14.  Am  I  truthful  at  all  times?    Do  I  deceive  myself  as  to  my  honesty? 

15.  Am  I  accurate  and  rapid  in  my  work?  Am  I  interested  in  improving 
my  efficiency? 

16.  Did  I  ever  get  a  job  by  my  own  effort?  Am  I  capable  of  filling  some 
position  well?    Have  I  cultivated  my  observation  and  memory? 

17.  Am  I  loyal  to  my  employer  and  friends?  Can  I  be  relied  upon  in 
time  of  trouble?    Do  I  talk  too  much? 

18.  Have  I  a  savings  bank  account?  Do  I  save  money  because  I  am 
stingy  or  selfish?    Do  I  want  money  to  spend  in  self-indulgence? 

19.  Have  I  formed  habits  of  thinking  and  doing  which  may  some  time 
injure  my  health  or  character? 

20.  Do  I  wish  to  succeed  for  the  purpose  of  showing  off,  to  have  an  easy 
time,  or  to  satisfy  my  ambition  or  appetites? 

Picking  out  your  weak  points.  Perhaps  your  answers  to 
these  questions  will  give  you  some  things  to  think  about.  After 
adding  up  the  number  of  points  you  have  made,  ask  yourself  if 
there's  any  reason  why  you  can't  make  100  points.  Undoubtedly 
you  made  the  full  five  points  on  some  of  the  questions;  why 
didn't  you  make  five  points  on  every  question? 


EMPLOYMENT  215 

Run  back  over  those  on  which  you  marked  yourself  less  than 
five  points  and  try  to  find  out  what  you  lack  on  each  point  to 
bring  your  standard  up  to  five;  when  you  have  decided  what 
you  need,  determine  then  and  there  to  start  to  improve  yourself 
and  bring  your  standard  up.  No  one  else  can  do  it  for  you;  if 
you  haven't  interest  enough  in  your  own  self  to  do  it,  surely 
you  can't  expect  anyone  else  to  have  that  interest  in  you.  You 
will  be  surprised  to  find  how  much  progress  you  can  make. 

What  employers  are  looking  for.  Having  analyzed  your- 
self and  found  what  your  strong  points  are,  you  must  look 
around  to  see  who  wants  an  employee  with  strong  points  like 
yours.  A  large  number  of  employment  managers  met  in  Chicago 
a  short  time  ago  for  the  purpose  of  discussing  the  subject: 
"Positions  I  find  the  most  difficult  to  fill,  and  why."  It  was 
generally  conceded  that  it  is  difficult  to  find  trustworthy  and 
competent  employees  with  the  qualifications  listed  beloWo  Here 
is  what  these  employment  managers  decided  they  wanted  in  the 
people  they  hire: 

Loyalty,  reliability,  and  truthfulness 

Will-power  or  tenacity  of  purpose 

Accuracy  and  attention  to  detail 

Memory  and  ability  to  follow  directions 

Perseverance  and  willingness  to  be  workers  before  being  bosses 

Interest  enough  to  do  your  best  and  cooperate 

Initiative  to  plan  for  your  future 

Observation  and  care  in  your  work  of  today 

Judgment  and  discrimination  of  relative  values 

Wisdom  to  know  when  to  keep  your  mouth  shi^ 

lile  there  are  probably  few  employees  with  all  these 
desirable  qualities,  yet  after  all  the  acquiring  of  most  of  them  is 
largely  a  matter  of  self-training  and  development.  Everythmg 
depends  largely  on  your  own  efforts. 

A  few  of  the  possibilities.  A  quick  glance  over  the  field 
of  work  open  to  you  will  help  you  to  determine  what  business 
you  wish  to  get  into.  If  you  decide  to  learn  a  business  such  as 
lumber  for  instance,  or  hardware,  you  will  expect  eventually  to 
know  that  business  from  top  to  bottom,  inside  and  out.  In  other 
words,  you  will  become  an  expert  in  that  particular  industry 
and  you  will  know  little  about  any  other. 


216  OFFICE  TRAINING  AND  STANDARDS 

Practically  all  human  activity  can  be  expressed  in  the  terms 
used  by  the  Declaration  of  Independence — the  providing  and 
maintaining  of  the  factors  essential  to  hfe,  liberty,  and  the  pur- 
suit of  happiness.  What  things  are  essential  to  life?  Food, 
clothing  and  shelter.  To  Uberty?  Protection  and  education.  To 
the  pursuit  of  happiness?  Nearly  everything  that  is  not  included 
in  the  other  two. 

Another  division  into  which  all  of  these  factors  can  again  be 
separated  is  that  of  necessities  and  luxiu-ies.  Some  foods  are 
necessities,  others  are  luxuries;  some  clothing  is  a  necessity, 
some  clothes  are  luxuries;  some  shelter  is  a  necessity,  some 
palaces  are  luxuries.  The  dividing  Une  between  necessities  and 
luxuries  is  not  clearly  defined,  nor  will  it  ever  be,  probably,  but 
you  will  find  that  as  the  things  essential  to  life  and  Uberty 
approach  the  description  of  luxuries,  they  also  become  more  or 
less  essential  to  the  pursuit  of  happiness. 

You  have,  therefore,  two  standards  by  which  to  choose — 
one  the  kind  of  work  you  feel  would  interest  you  most,  and  the 
other  the  kind  of  work  which  would  probably  be  in  most  demand; 
in  short,  the  line  in  which  you  could  do  the  best  work,  and  the 
Une  which  wiU  pay  you  the  most  money  for  your  efforts. 

Why  it  is  worth  while.  This  may  seem  like  a  lengthy  job 
and  rather  tedious,  perhaps.  But  it  is  your  life  work  you  are 
planning  for,  and  a  few  days  or  a  week,  or  even  a  month  or  more, 
spent  now  in  finding  where  you  belong  will  be  weU  spent.  How 
old  are  you  now?  How  many  more  years  do  you  expect  to  live? 
What  proportion  of  the  years  you  expect  to  live  is  the  number 
of  years  you  have  already  lived?  Is  it  worth  while,  then,  to  plan 
for  those  years  ahead?  You  aren't  planning  only  for  the  next 
two  or  three  years — you  are  planning  for  the  next  20,  40  or  60 
years,  depending  on  how  old  you  arc  now.  And  what  you  do 
in  those  20,  40,  or  60  years  will  depend  largely  on  the  nature  of 
the  steps  you  take  now. 

Pick  out  two  or  three  of  the  really  big  men  in  the  lines  of 
business  you  have  chosen.  Call  on  these  men,  and  ask  them 
questions  about  their  work  and  what  opportunities  it  offers  to 
you.  If  you  approach  them  in  an  earnest,  sincere,  businesslike 
way,  you  will  find  these  men,  whose  time  is  so  valuable  that  it 


Salary 


Employed  by 


Do  not  fill  in  the 
above  space 


Miller  &  Grove 
Jewelers 

Application  for  Position 


Name 

Age 

Date 

Address 

Telephone  No. 

With  whom  do  you  live? 

Nationality 

If  with  parents,  state  so 


Position  desired 


Introduced  by 


Grammar  school 


What  grade?   If  graduate. 

High  school 


How  long?     If  graduate.  ; 


College 


If  business  college,  state  so. 


State  below   if  you   have   any 
special  training  or  qualifications. 


References: 
Give  below  four  personal  references  who  have  known  you  for  past  five  years. 
Business  or  professional  men  preferred.  (Do  not  name  relatives  or  previous    employers.) 


Name 


Business  or  Occupation 


Address 


FIGURE  74:  If  you  should  apply  for  a  position  with  Miller  and  Grove,  Jewelers, 
this  is  the  application  you  would  be  asked  to  fill  out.  Your  answers  to  these 
questions  would  determine  to  a  great  extent  whether  or  not  you  were  offered  the 
position.     Even  such  simple  questions  give   opportUiiity  to  display   intelligence. 

217 


Record    of  Previous  Employment 

Give  your  present  or  last  position 
first  and   other   positions   in  order 

1     Last  position 
Employer                                                                           Address 

Business                                                                             From                          19        To 

19 

Position   held                                           Under  whom                                              Salary 

Reason  for  lenvinp 

2    Next  to  last  positioa 
Employer                                                                       Address 

Business                                                                           From                       19        To 

19 

Position  held                                         Under  whom                                           Salary 

Reason  for  leaving 

3    Third  last  position 
Employer                                                                       Address 

Business                                                                          From                        19        To 

19 

Position   held                                           Under   whom                                             Salary 

Reason  for  leaving 

4     Fourth  last   position 
Employer                                                                           Address 

Business                                                                              From                          19        To 

19 

Position    held                                            Under   whom                                             Salary 

Reason  for  leaving 

FIGURE  75:  This  is  the  other  side  of  the  application  blank  shown  on  page  217. 
It  tells  in  brief  a  history  of  your  business  career,  and  so  gives  the  employer  an  indi- 
cation of  your  experience.  It  tells  what  kind  of  work  you  have  been  doing,  what 
salary  you  received  for  that  work,  and  other  important  facts  about  your  former  work. 

218 


EMPLOYMENT  219 

cannot  be  bought,  will  ordinarily  give  you  their  attention  and 
you  will  be  able,  perhaps,  to  go  through  their  offices  and  shops 
and  plants  and  find  out  at  first  hand  whether  the  work  would 
appeal  to  you  or  not.  Thus  you  can  get  a  line  on  almost  any 
business,  and  determine  more  easily  which  one  you  want  to 
enter.  Of  course,  you  can  hardly  expect  to  include  everything 
in  one  or  two  hasty  trips,  but  you  can  at  least  get  some  ideas. 

Selecting  your  employer.  Having  determined  the  line  of 
endeavor  you  want  to  take  up,  two  w^ays  of  getting  a  position 
are  open  to  you.  One  is  to  scan  the  classified  advertisements  in 
the  newspapers  and  trade  journals;  the  other  is  to  select  the  most 
progressive  concerns  in  your  line  and  write  to  the  employment 
managers.  Whichever  way  you  choose,  the  information  desired 
by  your  prospective  employers  is  much  the  same — the  main 
points  on  which  you  will  be  judged  are  what  you  can  do  and 
how  well  you  can  do  it.  That  is,  if  you  are  selected  for  a  posi- 
tion, it  will  not  ordinarily  be  because  of  your  knowledge,  but 
how  well  you  can  apply  that  knowledge. 

In  many  instances  you  will  be  given  an  apphcation  blank  to 
fill  out.  The  care  with  which  you  fill  out  this  blank,  and  your 
answers  to  the  questions  asked,  will  go  a  long  way  toward  deter- 
mining whether  or  not  you  are  fitted  for  the  job. 

If,  on  the  strength  of  your  written  application,  the  manager 
is  interested  to  consider  you  further  for  the  position  at  his  dis- 
posal, he  may  ask  you  to  call  and  see  him.  Or,  if  you  are  in  his 
office  when  you  make  out  the  application  blank  and  he  is  in  a 
hurry  to  fill  the  job,  he  may  see  you  then  and  there.  Some 
managers,  unless  the  need  is  urgent,  do  not  like  to  decide  at  the 
time  of  the  first  call,  but  will  ask  you  to  come  again  the  next 
day,  or  possibly  later  the  same  day.  This  also  gives  the  manager 
an  opportunity  to  look  up  your  references  and  to  satisfy  himself 
as  to  your  character. 

Tests  to  measure  your  ability.  Certain  tests  may  be  re- 
quired of  you  to  determine  your  knowledge,  abiHty,  and  mental 
alertness.  One  of  the  tests  given  appUcants  for  the  position  of 
typist  in  a  large  department  store  is  to  copy  the  following 
quotation,  making  all  the  necessary  corrections.  The  instruc- 
tions are  to  do  it  as  quickly  and  neatly  as  you  can,  but  to  be 


220  OFFICE  TRAINING  AND  STANDARDS 

sure  you  correct  every  mistake  in  spelling,  punctuation,  and 
capitalization.  You  are  timed  on  this,  to  see  how  near  you  come 
to  the  standard  of  210  words  in  3  minutes. 

WHERE  PERSONALITY  COUNTS 

Business  men  and  Execitives  are  looking  everywehere  for  young  Men  and 
Women  of  the  right  calaber  to  bring  into  their  organizations  and  develope 
them  up  to  the  point  of  highest  afficiency.  They  want  the  kind  of  young  people 
who  are  equiped  with  that  eluesive  thing  called  personality — That  unexceeled 
ground-work  for  success. 

They  want  people  who  make  a  good  impresion  on  others,  who  show  in 
their  apearance,  maners  and  activities  that  they  posess  the  success  qualities, 
they  want  people  who  are  capable  of  conducting  transactions  with  other  people, 
to  represent  the  house  in  a  fitting  way — people  with  grasp  and  comprehention, 
initiative  and  deciision. 

Personality  comes  into  play  where  an  impresion  is  to  be  made  on  other 
people,  a  man  may  have  a  sturling  character  and  ability  of  high  order,  but  when 
it  comes  to  makeing  others  realise  these  qualaties  he  must  have  the  power  in 
some  sense  at  least  of  making  others  appretiate  them  in  him,  in  other  words, 
he  must  know  how  to  display  his  goods  to  the  best  advantage  so  far  as  the 
other  fellow  is  concerned. 

Go  into  the  office  of  any  succesful  man  and  an  interesting  study  in  person- 
ality confronts  you,  the  personal  appearance  of  the  man,  his  manner,  his  bearing, 
his  way  of  looking  at  you — all  these  impress  you. 

Can  you  follow  instructions?  Here  is  another  test  which 
will  show  the  employment  manager  who  uses  it  whether  or  not 
you  are  above  or  below  the  standard  requh-ed  in  ability  to 
interpret  quickly,  carefully,  and  accurately,  and  to  carry  out 
printed  instructions: 

This  exercise  is  given  for  the  purpose  of  testing  your  speed,  accuiacy, 
and  ability  to  interpret  correctly  what  you  read.  It  is  really  a  game  which 
emables  you  to  compare  your  score  and  efficiency  with  that  of  other  applicants 
for  the  same  position.  Each  question  is  worth  a  certain  number  of  points  and 
your  total  number  of  correct  points  earned,  divided  by  the  number  of  minutes 
you  required  for  answering  the  questions,  will  give  your  score  per  minute. 
Answer  all  questions  as  quickly  and  accurately  as  possible  and  hand  in  your 
paper  as  soon  as  completed,  so  that  your  exact  time  may  be  recorded  as  a 
part  of  your  record. 

1.  Read  the  above  paragraph  and  state  how  your  score  per  minute  will 
be  obtained. 

2.  How  many  words  in  the  same  paragraph? 

3.  How  many  sentences  in  the  same  paragraph?    If  t\\e  first  sentence  is 
the  longest,  underscore  the  first  word  of  the  last  sentence.    If  the  third  sentence 


EMPLOYMENT  221 

is  the  longest  sentence  in  the  paragraph,  make  three  dots  underneath  the  last 
word  of  the  last  sentence. 

4.  How  many  letters  in  the  longest  sentence? 

5.  In  the  same  paragraph  underscore  each  word  containing  exactly 
four  letters. 

6.  If  efficiency  is  the  longest  word  in  the  paragraph,  draw  a  ring  around 
the  first  word  of  the  paragraph.  If  some  other  word  is  longer,  place  a  dot 
underneath  each  letter  of  the  longest  word. 

7.  Give  the  number  of  e's  and  o's  altogether  in  the  paragraph. 

8.  Write  all  the  letters  of  the  alphabet.    Repeat  3  times. 


9.    Write  the  nine  digits.    Repeat  nine  times. 


10.  An  even  number  is  one  that  is  exactly  divisible  by  2.  An  odd  number 
is  not  exactly  divisible  by  2.  Draw  a  ring  around  all  the  even  digits  which  you 
wrote  in  9.  If  you  have  written  more  odd  digits  than  even,  draw  a  line  through 
all  the  a's,  e's,  i's,  and  o's  which  you  wrote  in  8.  If  there  are  more  even  digits 
than  odd,  draw  a  line  through  all  the  nines. 

It  is  possible  to  make  1,000  points  if  all  of  these  questions 
are  correctly  answered.  The  most  accurate  pupils  will  finish  the 
work  in  20  minutes  or  less.    This  makes  an  average  of  50  points 


222  OFFICE  TRAINING  AND  STANDARDS 

a  minute  for  the  standard.  High  school  9th  grade  pupils  will 
average  33  points.  Employment  managers  will  give  an  apphcant 
a  trial  if  he  can  make  the  average  of  33  points,  but  anything 
below  that  is  considered  hopeless. 

Are  you  a  clear  thinker?  An  interesting  test  which  gives 
an  employment  manager  an  idea  of  your  mental  alertness  is 
this  one: 

Place  a  cross,  like  this  X,  before  each  statement  or  definition  which 
is  reasonable  and  correct.  If  you  think  it  is  not,  you  may  write  the 
sentence  correctly. 

1.  Living  expenses  are  higher  in  the  country  than  in  the  city. 

2.  There  is  a  greater  variety  of  amusements  in  the  country  than  in 
the  city. 

3.  The  schools  in  the  country  are  better  than  those  of  the  city. 

4.  It  is  pleasant  to  breathe  the  odors  of  the  plants  in  the  country. 

5.  It  is  generally  conceded  that  farmers  have  fewer  accidents  than 
people  living  in  the  city. 

6.  It  is  pleasant  to  ride  to  and  from  the  city  daily. 

7.  It  is  pleasant  to  hear  the  birds  singing  and  the  roosters  crowing  and 
the  horses  neighing  at  dawn  in  the  morning. 

8.  Our  best  business  men  were  brought  up  in  the  country. 

9.  The  automobile  is  a  great  time  saver;  therefore  the  farmer  who  owns 
one  spends  more  time  at  his  work. 

10.  More  people  attend  church  since  the  automobile  has  come  into 
general  use  because  it  is  so  easy  to  get  there. 

11.  People  read  more  because  they  can  read  while  riding  in  an  automobile. 

12.  People  owning  automobiles  save  money  because  they  do  not  spend 
BO  much  carfare. 

13.  Driving  a  car  is  not  so  dangerous  as  driving  horses,  so  there  are  less 
accidents  since  automobiles  came  in  use. 

14.  To  write  is  to  make  words  on  paper  with  a  pen  or  pencil. 

15.  To  solve  a  problem  is  to  make  figures  and  put  them  in  the  proper  places. 

16.  A  chair  is  a  piece  of  furniture  on  which  we  may  comfortably  sit. 

17.  The  boundary  between  two  states  is  a  line  which  shows  where  one 
state  begins  and  another  ends. 

18.  The  boy  said  he  could  solve  the  three  last  problems. 

19.  If  Sunday  were  called  Monday,  then  Thursday  would  be  Friday. 

20.  Edison  invented  the  Bell  telephone. 

21.  The  laws  of  England  do  not  permit  a  man  to  marry  his  widow's  sister. 

22.  Our  president's  name  eight  years  ago  was  Wm.  H.  Taft. 

23.  Richard  wrote  "Poor  Richard's  Almanac." 

24.  The  boys  are  not  allowed  to  wear  soft  collars  and  cuffs  on  their  pants, 

25.  The  Indian  was  80  years  old  and  looked  twice  his  age. 


EMPLOYMENT  223 

26.  The  adversaries  were  given  pistols  and  placed  an  equal  distance  from 
each  other. 

27.  A  woman  said  she  had  no  children  and  that  her  mother  was  afflicted 
in  the  same  way, 

28.  The  unfortunate  patient  lay  speechless  for  six  long  weeks  in  the 
month  of  August,  crying  incessantly  for  water. 

29.  With  these  few  words  he  lit  a  cigar. 

30.  A  child  wearing  a  pink  dress  was  run  over  by  a  wagon  four  years  old 
and  terribly  injured. 

31.  If  18  eggs  cost  18  cents  a  dozen,  one  egg  costs  one  cent. 

32.  K  3  cats  catch  3  rats  in  3  minutes,  one  cat  will  catch  one  rat  in  one 
minute. 

33.  If  3  men  standing  on  a  mountain  can  see  9  miles,  one  man  can  see 
one-third  of  9  miles  or  3  miles. 

34.  If  a  calf  weighs  75  pounds  standing  on  3  legs,  it  will  weigh  100  pounds 
while  standing  on  four  legs. 

35.  Moses  drove  the  animals  into  the  ark  two  by  two. 

36.  Americus  discovered  America  in  1492. 

37.  Thomas  Jefferson  wrote  Franklin's  autobiography. 

38.  Samuel  F.  B.  Morse  invented  the  wireless  telegraph. 

39.  Robert  Fulton  invented  the  steam  engine. 

40.  George  Washington  wrote  the  Declaration  of  Independence. 

EMPLOYMENT  STANDARDS 

Suggestions  that  may  help  you 

1.  Do  not  apply  for  a  position  you  cannot  fill. 

2.  Do  not  answer  an  advertisement  if  you  don't  fit  the  requirements. 

3.  Don't  say  you  are  better  than  you  know  you  are. 

4.  Don't  lie  about  your  age  or  about  anything  else. 

5.  Do  not  fail  to  obey  instructions. 

6.  Do  not  hesitate  in  answering  questions. 

7.  Do  not  ask  unnecessary  questions. 

8.  Do  not  fail  to  be  polite. 

9.  Do  not  fail  to  be  clean  and  neat  in  appearance. 

10.  Don't  say:  "I  feel  that  I  am  capable." 

11.  Don't  waste  words  on  unimportant  details. 

12.  Don't  fail  to  tell  what  you  can  do — and  then  stop. 

13.  Don't  fail  to  answer  all  the  questions  in  the  advertisement. 

14.  Don't  have  someone  write  your  letter  for  you. 

15.  Do  not  make  any  mistakes  in  spelling  and  punctuation. 

16.  Do  not  use  worn-out  forms  of  expression. 

17.  Do  not  make  mistakes  in  the  mechanical  construction. 

18.  Do  not  boast  or  cringe. 

19.  Do  not  be  afraid  to  ask  what  your  services  are  worth. 

20.  Don't  sign  your  name  with  the  typewriter. 


224  OFFICE  TRAINING   AND  STANDARDS 

21.  Don't  use  the  typewriter  if  it  is  necessary  for  your  prospective  em- 
ployer to  see  your  handwriting. 

22.  Don't  use  fancy  letter  paper. 

23.  Don't  use  hotel  paper  or  the  letterhead  of  your  last  employer. 

24.  Don't  send  a  letter  that  is  soiled  or  that  contains  erasures. 

25.  Don't  fail  to  fold  your  letter  properly. 

26.  Never  forget  to  look  pleasant  and  be  cheerful. 

27.  Never  look  for  the  easy  job  or  "soft  snap";  it  doesn't  lead  anywhere. 

28.  Never  forget  that  you  learn  to  climb  mountains  by  climbing. 

29.  Never  forget  that  hard  work  is  a  game  you  can  enjoy. 

30.  Never  forget  that  you  can  do  something  well  if  you  really  want  to 
do  it  and  know  how. 

31.  Never  forget  that  what  you  do,  counts  for  more  than  what  you  can  do. 

32.  Never  forget  that  what  you  are,  means  more  to  you  than  what  you  do. 

33.  Is  it  your  fault  or  the  employment  manager's  if  you  don't  get  the 
position  for  which  you  apply? 

34.  Is  it  better  to  be  able  to  do  a  number  of  things  fairly  well  or  one  thing 
exceedingly  well? 

35.  What  would  you  think  of  greatest  importance  in  preparing  yourself 
for  an  office  position? 

36.  Suppose  you  could  write  100  words  a  minute  on  the  typewriter  but 
your  application  blank  revealed  an  untruth,  do  you  think  you  would  get  the  job? 

37.  Suppose  you  were  interested  in  your  work,  accurate  and  rapid  in 
execution,  but  talked  outside  about  the  secrets  of  the  office;  how  long  would 
you  hold  your  job? 

38.  How  would  neatness,  accuracy,  speed,  and  perseverance  as  a  book- 
keeper compare  with  trustworthiness? 

39.  How  would  ability,  experience,  and  initiative  as  a  stenographer  com- 
pare with  reliability? 

40.  Would  an  employer  keep  experienced  and  capable  help  who  did  not 
have  good  health? 

41.  Would  an  employer  keep  a  superior  stenographer  who  was  careless 
and  slovenly  in  appearance? 

42.  Would  an  employer  keep  a  clerk  who  had  ability  and  perseverance 
if  he  was  grouchy  or  impolite? 

EMPLOYMENT  STANDARDS 

Getting  a  bond 
In  addition  to  the  questions  asked  applicants  for  a  position,  the  surety 
companies  will  ask  you  for  information  that  is  decidedly  personal,  before  they 
will  guarantee  your  honesty. 

1.  Give  your  name,  age,  residence,  and  a  full  personal  description  of 
yourself. 

2.  What  is  the  nature  of  the  business  carried  on  by  your  employer? 

3.  How  long  have  you  been  in  the  service  of  your  present  employer? 


EMPLOYMENT  225 

4.  How  long  have  you  been  in  the  position  for  which  the  bond  is  required? 

5.  Who  will  pay  the  premium  for  this  bond? 

6.  If  you  have  ever  furnished  any  other  bond,  why  was  it  discontinued? 

7.  Has  a  loss  ever  been  paid  on  your  bond? 

8.  What  salary  will  you  receive? 

9.  Are  you  responsible  for  any  losses  occasioned  by  bad  credits? 

10.  If  you  own  any  real  estate,  where  is  it  located  and  what  is  its  value? 

11.  If  you  own  any  personal  property,  of  what  does  it  consist? 

12.  Is  there  any  incumbrance  on  your  property?    If  so,  how  much? 

13.  What  other  indebtedness  have  you? 

14.  How  much  property  do  your  parents  own? 

15.  How  many  persons  are  dependent  on  you  for  support? 

16.  If  your  life  is  insured,  to  whom  is  the  policy  payable? 

17.  Were  you  ever  in  business  on  your  own  account? 

18.  What  were  your  reasons  for  discontinuing  your  business? 

19.  Did  you  ever  make  an  assignment  for  the  benefit  of  your  creditors? 

20.  Do  you  occasionally  invest  in  stocks,  grain,  oil,  or  real  estate? 

21.  When  and  by  whom  were  your  accounts  last  examined? 

22.  If  you  have  ever  been  discharged  from  any  position,  state  why. 

23.  Where  and  when  were  you  born? 

24.  If  you  were  foreign-born,  how  long  have  you  been  a  resident  of  the 
United  States  of  America? 

25.  If  you  have  been  naturalized,  give  the  date,  the  place,  and  the  court. 

26.  Of  what  country  are  you  a  citizen  if  you  are  not  naturalized? 

27.  Do  you  ever  use  alcoholic  liquors?  Did  you  ever  use  them  to  excess? 
If  so,  when? 

28.  Give  the  names  and  addresses  of  your  employers  for  the  past  two  years. 

29.  Give  the  names  and  addresses  of  three  of  your  school  teachers  to  whom 
we  can  refer. 

30.  Give  names  and  addresses  of  three  persons,  not  relatives,  to  whom  we 
can  refer, 

EMPLOYMENT  STANDARDS 

What  the  bonding  companies  want  to  know  about  you 
On  page  226  are  some  of  the  questions  that  a  surety  company  will  ask 
your  instructors,  your  employer,  and  your  references.  There  is  a  reason  for 
asking  each  question.  How  do  you  think  a  truthful  answer  to  each  one  would 
influence  the  bonding  company  in  case  you  were  to  be  promoted  to  a  position 
of  trust  and  were  required  to  furnish  a  bond? 

A  large  New  York  surety  company  says:  "This  form  must  be  returned  to 
the  home  office  of  the  company  before  any  bond  will  be  issued.  As  we  depend 
largely  upon  an  applicant's  record  at  school  and  with  his  former  employer  for 
an  estimate  of  his  general  worthiness  of  guarantee,  we  would  thank  you  for 
answers  to  all  questions  asked,  assuring  you  that  any  information  given  us 
will  be  treated  as  strictly  confidential,  and  will  be  used  by  us  solely  in  judging 
the  risk." 


226  OFFICE  TRAINING  AND  STANDARDS 

1.  How  long  was  the  applicant  in  attendance? 

2.  Do  your  records  show  punctuality  in  attendance? 

3.  Do  your  records  show  good  deportment? 

4.  Did  he  give  good  attention  to  his  studies? 

5.  Was  he  a  student  of  ability? 

6.  Was  he  known  to  have  any  bad  habits? 

7.  Were  his  companions  favorable  associates? 

8.  Was  he  ever  known  to  bet  or  gamble? 

9.  Was  he  addicted  to  the  use  of  any  liquor,  drug,  or  opiate? 

10.  Was  he  ever  fond  of  speculation? 

11.  Have  you  ever  known  or  heard  of  any  dishonorable  action? 

12.  Was  he  good-natured  or  irritable? 

13.  Was  he  level-headed  or  erratic? 

14.  Was  he  careful  or  careless  about  his  work? 

15.  Was  he  honest  and  truthful? 

16.  Was  he  a  willing  worker? 

17.  Was  he  careful  or  careless  about  his  personal  appearance? 

18.  Was  he  afraid  of  long  hours? 

19.  Did  he  generally  try  to  give  satisfaction? 

20.  From  your  acquaintance  with  him  and   his   antecedents,   do  you 
regard  him  as  entirely  trustworthy? 

21.  If  ever  in  your  employ,  what  objection,  if  any,  would  you  have  to 
employing  him  again? 

22.  What  position  did  he  occupy  in  your  service? 

23.  Did  his  duties  embrace  the  handling  of  cash? 

24.  Did  he  always  make  prompt  and  correct  settlement? 

25.  For  what  reason  did  he  leave  your  service? 

26.  Was  he  in  debt  to  you  at  the  time  he  left  your  service? 

27.  How  long  have  you  known  the  applicant? 

28.  Why  is  bond  now  wanted  on  his  behalf? 

29.  What  will  be  the  title  of  the  applicant's  position? 

30.  How  much  is  his  salary  and  when  will  it  be  paid? 

31.  What  is  the  largest  amount  of  cash  he  will  be  permitted  to  control 
at  one  time? 

32.  State  whether  applicant  is  permitted  to  indorse  checks  drawn  to 
your  order. 

33.  Can  he  sign  checks  without  the  countersignature  of  some  other  person? 

34.  What  means  will  you  use  to  ascertain  whether  his  accounts  are  correct? 

35.  How  often  will  his  accounts  and  books  be  audited? 

36.  Has  he  ever  been  short  in  his  accounts  with  you? 

EMPLOYMENT  STANDARDS 

Getting  a  job 
Here  are  some  of  the  questions  that  must  be  answered  by  applicants  for  a 
position.    They  were  taken  from  the  application  blanks  of  several  different 


EMPLOYMENT  227 

firms.    Why  do  you  suppose  that  any  company  would  care  to  know  the  answer 
to  each  of  these  questions?    Do  you  think  you  could  answer  them  satisfactorily? 

1.  Give  your  name,  age,  height,  weight,  the  color  of  your  hair  and  eyes, 
your  complexion,  and  nationality. 

2.  What  schooling  have  you  had? 

3.  What  school  did  you  last  attend? 

4.  How  long  has  it  been  since  you  left  school? 

5.  Why  did  you  stop  school  when  you  did? 

6.  Why  did  you  leave  your  last  position? 

7.  If  you  are  now  employed  why  do  you  wish  to  change? 

8.  Do  you  live  with  your  parents? 

9.  Have  you  anyone  dependent  on  you? 

10.  Do  you  attend  church? 

11.  Are  you  addicted  to  the  use  of  tobacco,  liquor,  or  opiates? 

12.  Is  your  health  good? 

13.  Do  you  have  any  defect  of  sight,  hearing,  speech,  or  limb? 

14.  What  are  your  favorite  forms  of  recreation? 

15.  To  what  club,  union,  or  society  do  you  belong? 

16.  Have  you  done  any  studying  since  leaving  school?    If  so,  what? 

17.  Have  you  ever  been  discharged?    Give  full  particulars. 

18.  Have  you  ever  been  charged  with  being  in  arrears  in  any  position? 

19.  Did  you  ever  give  a  surety  bond? 

20.  Would  you  be  willing  to  do  so,  if  required? 

21.  Are  you  financially  interested  in  any  business? 

22.  Have  you  any  income  aside  from  your  salary? 

23.  To  what  extent  have  you  engaged  in  speculation? 

24.  To  what  extent  are  you  in  debt? 

25.  Do  you  carry  any  life  insurance? 

26.  Do  you  carry  any  accident  insurance? 

27.  Have  you  ever  been  involved  in  any  lawsuits? 

28.  Do  you  own  any  real  estate? 

29.  Have  you  a  savings  bank  account? 

30.  If  married,  give  the  name  and  address  of  your  wife  or  husband. 

31.  Give  the  name  and  address  of  your  parents,  if  living. 

32.  If  you  are  not  married  and  your  parents  are  not  living,  give  the  names 
and  addresses  of  your  nearest  relatives. 

33.  Are  you  subject  to  dizziness  or  fainting  spells? 

34.  What  long  or  serious  sickness  have  you  had? 

35.  Have  you  ever  been  injured?    If  so,  to  what  extent? 

36.  Were  you  ever  operated  on?    If  so,  for  what? 

37.  What  languages  do  j^ou  speak  or  write? 

38.  Are  you  good  at  figures? 

39.  What  kind  of  work  do  you  like  best? 

40.  What  work  do  you  think  you  are  best  qualified  to  do? 

41.  Have  you  ever  been  expelled  from  school? 

42.  Give  the  names  and  addresses  of  your  last  three  employers. 


228  OFFICE  TRAINING   AND  STANDARDS 

43.  Give  the  names  and  addresses  of  three  persons,  not  relatives  or  em- 
ployers, who  can  certify  as  to  your  character. 

44.  What  leads  you  to  make  this  application  and  why  do  you  think  you 
could  succeed  in  this  business? 

45.  If  3'ou  subscribe  regularly  for  some  magazines,  state  which  ones. 

46.  Name  some  book  of  fiction,  travel,  science,  or  business  which  you 
have  read  and  liked. 

47.  What  newspapers  do  you  read,  and  which  sections  of  these  papers 
interest  you  most? 

48.  Do  you  belong  to  any  athletic  club  or  association? 

49.  Do  you  engage  regularly  in  any  athletic  sports?    If  so,  which  ones? 

50.  Do  you  have  any  hobby,  such  as  music,  painting,  or  drawing? 

STANDARD  QUESTIONS 

Getting  a  bond 

1.  In  addition  to  the  questions  the  bonding  companies  ask,  they  will 
also  want  to  know  the  names  and  residence  of  j^our  parents  or  nearest  relatives. 
Why? 

2.  Would  they  prefer  to  have  your  relatives  live  in  the  United  States  or 
in  a  foreign  country?  Why? 

3.  Why  do  they  want  to  know  how  much  you  are  in  debt? 

4.  Why  do  they  want  to  know  the  color  of  your  hair,  beard,  eyes,  and 
complexion? 

5.  Does  it  make  any  difference  to  them  about  your  size  and  weight? 
Why  or  why  not? 

6.  Why  do  they  always  insist  on  knowing  the  names  and  addresses  of 
your  former  employers? 

7.  Do  they  place  much  dependence  on  your  school  record?  Why  or 
why  not? 

8.  Would  they  pay  much  attention  to  the  report  from  a  reference  who 
knew  you  only  slightly?    Why  or  why  not? 

9.  Why  do  they  want  to  know  about  the  way  your  employer  conducts 
his  business? 

10.  If  their  premiums  are  paid  promptly  does  it  make  any  difference 
about  the  amount  of  your  salary  or  income?    Why  or  why  not? 


CHAPTER  XV 

PERSONALITY  IN  BUSINESS 

BUSINESS  is  a  game,  and  those  who  would  win  must  pay 
the  price.  You  cannot  ''play  the  game"  unless  you  know 
the  rules,  and  apply  them. 
Where  shall  I  start?  At  the  bottom.  All  big  men  started  at 
the  bottom;  that's  where  everything  that  is  worth  while  starts. 
The  only  way  to  build  a  sohd,  substantial  foundation  is  to  begin 
at  the  bottom  and  work  up;  and  the  speed  with  which  you 
climb  depends  entirely  on  yourself. 

How  to  play  the  game.  If  you  have  mastered  the  lessons 
in  this  volume  you  have  made  a  start;  you  are  ready  for  the  next 
step  and  that  next  step  is  to  apply  to  your  daily  work  the  prin- 
ciples you  have  learned  here.  The  road  before  you  is  not  an  easy 
one;  it  is  no  road  for  a  shirker;  hard  work  hes  at  every  step  of 
the  way,  especially  at  the  start.  But  you  can  lighten  the  load 
considerably  and  make  progress  faster  and  enjoy  yourself  as 
well  if  you  will  always  keep  in  mind  this  one  suggestion: 

Throw  your  whole  soul  into  your  work;  make  a  game  out 
of  it;  and  "get  into  the  game." 

What  others  have  done  you  can  do.  You  will  find  help 
and  inspiration  from  knowing  how  other  men  became  successful. 
If  you  can  learn  the  methods  used  by  these  men  to  get  ahead, 
you  can  use  these  same  methods  to  get  ahead  yourself;  it  requires 
only  determination  and  application. 

Howard  Elliott,  president  of  the  Northern  Pacific  Railroad, 
says: 

"If  you  would  increase  your  power,  you  must  know  yourself 
through  self-analysis;  and  having  become  acquainted  with  the 
quahties  possessed  by  you,  you  must  so  apply  your  qualities, 
your  knowledge  of  human  nature,  and  your  knowledge  of  your 

229 


230  OFFICE  TRAINING   AND  STANDARDS 

business,  that  you  will  create  in  the  minds  of  those  with  whom 
you  deal  or  come  in  contact  the  effects  of  favorable  attention, 
interest,  desire,  action,  confidence,  and  satisfaction." 

Frank  A.  Vanderlip,  president  of  the  National  City  Bank  of 
New  York,  says: 

"A  man's  prospects  are  better  if  he  had  a  humble  start  and 
worked  his  way  up.  Conquering  adversity  begets  strength.  He 
must  be  a  good  team-worker — this  is  important.  He  must  be 
more  concerned  in  getting  a  thing  done  than  in  getting  credit 
for  it.  Finally  in  all  things  a  man  must  have  common  sense, 
horse  sense,  gumption — call  it  what  you  will." 

How  a  railroad  president  started.  Daniel  Willard  began 
raiboading  as  a  track  laborer  and  is  now  president  of  the  Balti- 
more and  Ohio  Railroad.    His  philosophy  of  "getting  on"  is: 

"I  have  always  tried  in  every  position  to  suit  my  employer, 
to  make  myself  as  useful  as  I  knew  how,  never  bothering  about 
the  number  of  hours  I  put  in  if  there  were  things  that  needed 
to  be  done.  I  have  always  been  an  early  riser.  It  is  well  to  read 
up  everything  within  reach  about  your  business;  this  not  only 
improves  your  knowledge,  your  usefulness,  and  your  fitness  for 
more  responsible  work,  but  it  invests  your  work  with  much 
more  interest. 

"I  had  no  special  advantages.  I  had  no  superior  education, 
no  unusual  mental  gifts,  no  physical  advantages,  no  influential 
friends,  no  money.  I  worked  my  way  out  of  the  rut  by  deter- 
mination to  keep  right  on  doing  the  best  I  knew  how  to  fill  my 
job,  plus,  and  losing  no  opportunity  to  increase  my  fitness  for 
my  job." 

From  a  dollar  a  day  to  a  million  a  year.  Charles  M. 
Schwab,  chairman  of  the  Bethlehem  Steel  Corporation,  began 
work  in  the  steel  business  at  a  dollar  a  day  and  now  receives  a 
salary  of  approximately  $3,000  a  day.    Mr.  Schwab  says: 

"The  prevailing  idea  about  genius  is  all  nonsense.  I  have 
found  that  the  surest  way  to  qualify  for  the  job  just  ahead  is 
to  work  a  little  harder  than  anyone  else  on  the  job  you're  holding 
down.  To  my  mind,  the  best  investment  a  young  man  starting 
out  in  business  can  possibly  make  is  to  give  all  his  time,  all  his 
energies  to  work — just  plain,  hard  work.    The  captains  of  in- 


FIGURE   76:    Miss    Nellie  M.    Scott,      FIGURE  77:    Rear    Admiral   Samuel 
president  of  the   Bantam  Ball  Bearing       McGowan  believes  that  offices,  like  ships, 
Company,  was  once  a  stenographer.  should  be  "stripped  for  action." 


FIGURE  78:    Thomas  E.  Wilson,  the      FIGURE  79:    Julius  Rosenwald  devel- 
president  of  Wilson  and  Company,  pack-       oped  Sears,  Roebuck  and  Company  into 
ers,  started  as  an  office  clerk.  the  largest  mail-order  house  there  is. 


231 


FIGURE  80:  Frank  A.  Vanderlip  FIGURE  81 :  Charles  M.  Schwab  says: 
worked  on  a  farm — now  he's  president  of  "I  work  just  for  the  pleasure  I  find  in 
perhaps  the  largest  bank  in  the  country.  work,    and    in    developing    things." 


FIGURE  82:     Walter   H.    Cottingham 

believes  that  enthusiasm  is  one  of  the 

greatest  aids  to  success  there   is. 


FIGURE    83:      Jud^c    Ellxrt    H.    Gary 
is   c'lairman   of  the   greatest    industrial 


organization   in   the   country. 


232 


PERSONALITY  IN  BUSINESS  233 

dustry  are  not  hunting  money.  They  are  seeking  brains — 
specialized  brains — and  faithful,  loyal  service.  Brains  are  needed 
to  carry  out  the  plans  of  those  who  furnish  the  capital." 

A  big  man's  secret  of  success.  Judge  Elbert  H.  Gary, 
chairman  of  the  United  States  Steel  Corporation,  compiled  the 
following  prescription  for  the  young  man  ambitious  to  attain 
success: 

1.  He  should  be  honest,  truthful,  sincere  and  serious 

2.  He  should  believe  in  and  preach  and  practice  the  Golden  Rule 

3.  He  should  be  strong  and  healthy,  physically  and  morally 

4.  His  habits  and  mode  of  living  should  be  temperate  and  clean,  and  his 
companions  selected  with  regard  to  their  character  and  reputation 

5.  He  should  possess  good,  natural  ability  and  a  determination  constantly 
to  improve  his  mind  and  memory 

6.  He  should  possess  a  good  education,  including  particularly  the  funda- 
mentals, such  as  mathematics,  grammar,  spelling,  writing,  geography,  and 
history;  and  also  a  technical  education  concerning  the  lines  he  proposes  to 
follow 

7.  He  should  be  studious  and  thoughtful,  keeping  his  mind  upon  a  subject 
until  it  is  mastered 

8.  He  should  be  conscientious,  modest  but  courageous,  energetic,  per- 
sistent, even-tempered,  economical,  faithful,  and  loyal  to  his  friends  and  the 
interests  he  represents. 

We  see  then,  that  three  things  are  essential:  Study,  training, 
and  hard  work.  Walter  H.  Cottingham,  president  of  the  Sherwin- 
WilUams  Company,  adds  a  fourth — enthusiasm.  Here's  the  way 
he  puts  it: 

"Knowledge  begets  confidence,  confidence  begets  enthusiasm, 
and  enthusiasm  conquers  the  world."  This  is  the  motto  of 
Sherwin-WilHams'  salesmen  all  over  the  world.  Perhaps  you 
might  find  it  worth  memorizing. 

What  happened  to  a  clock  gazer.  Two  young  men  grad- 
uated from  the  same  school  under  similar  conditions,  with 
practically  the  same  educational  qualifications.  They  were 
stenographers  and  began  work  in  the  same  estabUshment  at 
$40  a  month. 

In  three  years  one  man  was  getting  $60  a  month  and  was  a 
good  stenographer,  but  he  was  not  likely  to  be  promoted  agam 
soon.  The  other  one  was  a  manager  at  $200  a  month  and  was 
in  line  for  further  promotion. 


Five  Principles  of  Effective  Work 


^^    Plan    \^ 

^^^^Schedule\^ 

/^Execute  \. 

^/Measure  \. 

^/    Reward  \^^^ 

To  plan  rigMly  you 

The  work  must  be 

It  must  then  be 

The  work  accom- 

If your  work  is  accom- 

must know: 

scheduled 

executed: 

plished  must  be 
measured: 

plished  effectively 
you  should  be 

I   What  work  is  to 

A  schedule  to  be 

1   Skilfully 

rewarded  with: 

be  done 

effective  must  be: 

1   As  to  your 

2   Accurately 

potentiality 

1    Good  working 

Z  How  It  IS  to  be 

1    Definite 

conditions 

done 

3  Rapidly 

2   As  to  your  past 

records 

2  Health 

3  Wtien  it  is  to  be 

other  scheAjles 

4  Without  unneces- 

done 

3   Difficult  to 

sary  effort 

3  As  to  the  past  re- 
cords of  others 

3  Happiness 

4  Where  it  is  to  be 

accomplish,  but 

5   Without  unneces- 

4 Self-development 

done 

4   Possible  to 

sary  delay 

4  As  to  quantity 

5   Money 

5  How  fast  it  can 

accomplish 

5   As  to  quality 

be  done 

5   Rigidly  kept 

FIGURE  84:  If  you  model  all  your  work  on  these  five  basic  principles,  you  will 
be  more  than  likely  to  do  all  your  work  effectively.  And  if  your  work  is  effective, 
then  you  may  expect  your  reward — health,  happiness,  self-development,  and  money 


Save  the  Minutes!    Time  is  the  Most  Valuable  thing  in 

the  world!! 

Saving 

Means 

Or 

a  saving  in  the  wage  bill  each  year  of  the  amounts 
shown  below,  according  to  the    hourly  rate 

The   following   table 
shows  the  amoutit  that 

''„  of 
Time 

Mm. 
per 
Hour 

Saving 
Hours 

Per  Year 

5<- 

Wt 

I5r 

20f 

25r 

30f 

35f 

40f 

45r 

50c 

.016 

1 

40 

$2 

S4 

S6 

S8 

SIO 

SI2 

S14 

S16 

)18 

J20 

2 

80 

8 

12 

16 

20 

24 

28 

32 

36 

40 

can  be  saved  each  year 

.06 

3 

120 

12 

18 

24 

30 

36 

42 

48 

54 

60 

.066 

160 

16 

24 

40 

48 

56 

64 

72 

80 

In  wages  by  shortening 

.082 

5 

200 

20 

30 

40 

50 

60 

70 

90 

100 

the  labor  time  required 

.10 

6 

7 

240 
280 

24 
28 

36 
42 

48 

60 
70 

72 
84 

84 

112 

108 
126 

120 

to  perform  an  operation. 

.133 
IS 

8 
9 

320 
360 

32 
36 

48 

54 

64 
72 

80 
90 

96 

112 
126 

128 

162 

160 

10 

400 

20 

60 

80 

100 

120 

140 

160 

160 

2O0 

To  save  one  minute 

183 

440 

22 

44 

66 

88 

no 

132 

154 

176 

198 

220 

.120 

12 

4«0 

24 

48 

96 

168 

192 

216 

240 

in   each    hour  worked, 

.216 

13 

520 

26 

52 

78 

104 

130 

106 

182 

208 

234 

260 

.233 

560 

28 

56 

84 

140 

196 

252 

280 

means  a  saving  of  1.67o 

.25 

15 

600 

30 

90 

120 

180 

210 

240 

300 

In  the  wage  bill.  In  one 

.266 
.283 

16 
17 

640 
680 

32 
34 

64 
68 

96 

128 

160 
(70 

192 
204 

224 
238 

256 
272 

288 
306 

320 
340 

year,  one  minute  ineach 

.30 
,316 

18 
19 

720 
760 

36 
38 

76 

108 

152 

180 
190 

216 

2S2 
266 

288 

324 
342 

360 
380 

hour    saved    means    a 

.333 
350 

20 
21 

800 
840 

40 
42 

80 
84 

120 
126 

168 

200 
210 

240 
252 

280 
294 

320 
336 

360 
378 

420 

saving     of     40     hours. 

.366 

22 
23 

880 
920 

88 

138 

176 
184 

220 
230 

276 

308 
322 

352 
368 

396 

440 
460 

nearly  one  week. 

.40 

24 

960 

48 

96 

144 

192 

240 

288 

336 

386 

432 

480 

50 

100 

200 

250 

300 

350 

400 

450 

500 

.433 

26 

1040 

52 

156 

208 

260 

312 

416 

520 

Trueefficiencymeans 

,45 

loao 

54 

108 

162 

216 

270 

378 

432 

486 

540 

making  every  MINUTE 

466 
,483 

29 

1120 
1160 

58 

112 

168 

224 
232 

280 
290 

336 
348 

392 
406 

464 

504 
522 

560 
580 

count. 

,50 

1200 

60 

120 

180 

240 

300 

360 

420 

480 

540 

600 

This  table  Is  figu 

ed  on 

the  basis  of  an  8  hou 

r  day 

300  workin 

1  days 

in  tf 

e  year.  2'100  working  h 

ours. 

FIGURE  85:  You've  probably  heard  that  time  is  money,  but  perhaps  you've 
never  realized  just  how  much  money.  This  table  shows  how  many  dollars  would 
be  saved  in  a  year  if  one  minute  were  saved  every  hour  and  that  minute  well  spent- 

234 


PERSONALITY   IN  BUSINESS  235 

The  employment  manager  gave  me  the  secret  of  the  differ- 
ence in  their  progress.  The  first  was  a  "clock  gazer,"  not  inter- 
ested in  his  work,  and  never  did  anything  more  than  he  was 
required  to  do.  The  other  one  was  always  interested  in  his  work, 
and  was  never  afraid  to  make  improvements,  or  suggest  them 
at  least,  as  well  as  to  go  ahead  and  do  things  without  being  told. 
He  was  always  looking  for  a  harder  job  and  trying  to  make 
himself  more  valuable  to  the  company.  That,  after  all,  is  really 
all  there  is  to  initiative — being  a  "self-starter,"  instead  of  wait- 
ing for  somebody  else  to  "turn  the  crank"  or  to  push  the  button. 
The  man  with  initiative  does  not  have  to  be  pushed. 

Some  men  never  get  up  until  they  are  called.  If  no  one 
happens  to  apply  the  stimulus  they  are  gunpowder  without  the 
spark,  dough  without  the  yeast,  an  engine  without  the  steam. 

What  initiative  means.  An  office  boy  in  a  New  York 
concern  was  assigned  to  the  station  just  outside  the  president's 
door.  He  hadn't  been  on  the  job  long,  but  he  understood  his 
duties.  The  president  from  tune  to  time  would  tell  him  things 
to  do.  He  was  to  do  them.  That  was  all  there  was  to  it,  as  far 
as  he  could  see. 

One  day  the  president  called  him  in  and  said:  "There's  a 
baby  buggy  downstairs.    I  wish  you'd  take  it  out  to  my  house." 

Was  he  an  ordinary  new  office  boy?  Did  he  ask  any  questions? 
He  was  not.   He  did  not. 

He  left  the  room,  got  the  address  from  a  telephone  book, 
then  wheeled  the  baby  buggy,  a  big  one,  out  into  the  street  and 
down  into  a  subway  station.  There  he  learned  the  subway 
wouldn't  carry  it.  He  dragged  it  back  into  the  street  and  up 
into  an  elevated  station.  The  L-road  wouldn't  carry  it,  either. 
He  tried  to  get  on  a  surface  car,  with  the  same  luck. 

He  considered  walking;  but  it  was  seven  miles,  and  the  baby 
might  be  waiting.   Also,  the  president  might  be  needing  him. 

He  called  a  taxicab,  and  piled  the  baby  buggy  aboard.  At 
the  house,  he  lacked  money  enough  to  pay  the  taxi  fare,  and  so 
he  made  a  round  trip  of  it  for  himself. 

He  expected  to  be  fired  when  he  told  the  president  about  the 
$8  fare  waiting  outside.  Instead,  his  salary  was  raised.  This  is 
a  striking  example  of  initiative. 


236  OFFICE  TRAINING   AND  STANDARDS 

PERSONALITY  STANDARDS 
Are  your  chances  any  better  than  theirs? 

1.  Henry  Clay  began  his  career  as  a  clerk  in  a  lawyer's  office. 

2.  Daniel  Webster  worked  his  way  through  college  by  teaching  school. 

3.  Senator  Clark,  the  multi-millionaire  copper  magnate,  at  one  time  sold 
maps  for  a  living. 

4.  George  B.  Cortelyou,  president  of  the  Consolidated  Gas  Company  of 
New  York,  began  life  as  a  civil-service  stenographer. 

5.  Benjamin  Franklin  was  the  son  of  a  tallow  chandler  and  did  without 
meat  in  order  to  buy  himself  books. 

6.  John  Adams  was  the  son  of  a  poor  farmer. 

7.  The  father  of  Shakespeare  couldn't  spell  or  write  his  own  name. 

8.  George  W.  Perkins,  a  New  York  financier,  was  a  stenographer  in  his 
younger  days. 

9.  Robert  Burns  was  the  son  of  a  bankrupt. 

10.  James  A.  Garfield  was  a  boy  of  all  work;  he  was  too  poor  even  to  have 
a  trade. 

11.  Ulysses  S.  Grant  was  a  tanner  by  trade. 

12.  Abraham  Lincoln  was  a  boatman  and  rail  splitter. 

13.  Edward  Bok,  editor  of  the  Ladies'  Home  Journal,  was  once  a  stenog- 
rapher. 

14.  James  J.  Hill,  the  great  railroad  builder,  began  work  as  a  section  hand. 

15.  John  Milton  was  blind  when  he  wrote  "Paradise  Lost." 

16.  Frank  A.  Vanderlip,  president  of  the  National  City  Bank  of  New 
York,  was  once  a  stenographer. 

17.  Andrew  Carnegie,  who  has  given  away  more  millions  than  any  other 
man,  began  business  without  a  dollar. 

18.  A  prince  is  born  to  be  a  king  and  he  can  never  rise  above  his  station 
because  he  thinks  he  is  already  at  the  top. 

PERSONALITY  STANDARDS 

Business  maxims  that  have  helped  others 

1.  The  only  helpless  people  in  the  world  are  the  lazy. 

2.  The  wise  man  learns  by  experience,  but  fools  never  learn. 

3.  Procrastination  is  the  thief  of  time. 

4.  Time  is  money.    Thou  shalt  not  steal. 

5.  Have  a  time  for  everything  and  everything  in  its  time. 

6.  "By  and  by"  leads  to  the  road  "never." 

7.  No  man  has  any  right  to  say  he  is  of  no  account. 

8.  He  who  moves  not  forward  goes  backward. 

9.  Our  work  counts  for  more  than  our  talks. 

10.  Trifles  make  perfection  but  perfection  is  no  trifle. 

11.  One  today  is  worth  two  tomorrows. 

12.  The  deepest  rivers  flow  with  the  least  sound. 

13.  No  man  can  contradict  his  own  deed. 


PERSONALITY   IN  BUSINESS  237 

14.  He  who  comes  into  court  must  come  with  clean  hands. 

15.  Many  promises  lessen  confidence. 

16.  No  one  can  be  profited  by  his  own  wrongs. 

17.  He  that  wrongs  his  friend  wrongs  himself  more. 

18.  The  bigger  the  work  the  greater  the  joy  in  doing  it. 

19.  Luck  consists  in  always  being  on  the  job. 

20.  It  is  not  enough  to  be  good— be  good  for  something. 

21.  Concentration  is  the  secret  of  strength. 

22.  A  damaged  reputation  is  hard  to  repair. 

23.  God  helps  them  who  help  themselves. 

24.  Diligence  is  the  mother  of  good  luck. 

25.  •  A  penny  saved  is  a  penny  earned. 

26.  He  is  poor  whose  expense  exceeds  his  income. 

27.  Better  go  to  bed  without  supper  than  to  rise  with  debts. 

28.  See'st  thou  a  man  diligent  in  his  business;  he  shall  stand  before  kings. 

29.  Love  not  sleep  lest  thou  come  to  poverty. 

30.  Whatsoever  ye  would  that  men  should  do  to  you,  do  ye  even  so  to  them. 

31.  Don't  let  your  wishbone  take  the  place  of  your  backbone. 

32.  Folks  who  never  do  any  more  than  they  get  paid  for  never  get  paid 
for  any  more  than  they  do. 

33.  A  wise  man  will  make  more  opportunities  than  he  finds. 

34.  It  may  be  a  httle  farther  around  the  corner  of  a  square  deal,  but  the 
road  is  better. 

35.  To  rest  content  with  results  achieved  is  the  first  sign  of  business  decay. 

36.  The  talent  of  success  is  doing  what  you  can  well  and  doing  well  what- 
ever you  can. 

37.  Success  does  not  consist  in  never  making  blunders,  but  in  never  makmg 
the  same  one  a  second  time. 

38.  Even  the  fool  when  he  holdeth  his  peace  is  counted  wise. 

39.  I  know  what  pleasure  is,  for  I  have  done  good  work. 

40.  The  only  man  who  never  makes  a  mistake  is  the  man  who  never  does 
anything. 

41.  Our  doubts  are  traitors  and  make  us  lose  the  good  we  oft  might  win 
by  fearing  to  attempt. 

42.  Blessed  is  the  man  who  has  found  his  work. 

43.  Talk  less  and  listen  more. 

44.  When  in  doubt  mind  your  own  business. 

45.  Failure  is  only  for  those  who  think  failure. 

46.  Plow  deep  while  sluggards  sleep,  and  you'll  have  corn  to  sell  and  keep. 

47.  Today  is  short.  Yesterday  is  gone.  Tomorrow  may  never  come.  If 
you  have  anything  to  do,  get  busy. 

48.  Getting  things  done  is  largely  a  matter  of  getting  things  started. 

49.  Anything  that  is  worth  doing  is  worth  doing  well. 

50.  The  world  generally  gives  its  admiration  not  to  the  man  who  does 
what  nobody  else  ever  attempts  to  do,  but  the  man  who  does  best  what  multi- 
tudes do  well. 


238  OFFICE  TRAINING   AND  STANDARDS 

STANDARD  QUESTIONS 

"WHiat  are  your  chances  for  success? 

1.  May  a  poor  merchant  succeed? 

2.  Can  a  poor  doctor  succeed? 

3.  Must  a  poor  preacher  succeed? 

4.  Might  a  poor  teacher  succeed? 

5.  Could  a  poor  lawyer  succeed? 

6.  Would  a  poor  banker  succeed? 

7.  Should  a  poor  workman  succeed? 

8.  In  each  of  the  first  seven  questions,  substitute  the  word  "good"  for 
the  word  "poor"  and  see  if  the  answers  would  be  changed. 

9.  Substitute  the  word  "incompetent"  for  the  word  "poor."  How  are 
your  answers  affected? 

10.    Substitute  the  words  "hard  working"  for  the  word  "poor."  How  are 
your  answers  affected? 

STANDARD  EXERCISES 

The  application  of  business  maxims 

1.  Pick  out  10  maxims  which  appeal  to  you  particularly.  Take  each 
of  the  10  maxims  you  select,  and  tell  why  you  selected  it,  what  its  meaning  is, 
and  how  you  are  going  to  use  it  to  help  you. 

2.  Explain  the  meaning  of  the  saying  "  Proscrastination  is  the  thief  of 
time." 

3.  How  would  you  carry  out  the  maxim  "Have  a  time  for  everything 
and  everything  in  its  time"? 

4.  Do  you  believe  that "  No  man  has  any  right  to  say  he  is  of  no  account?  " 
Why  or  why  not? 

5.  Wliat  is  meant  by  "He  who  moves  not  forward  moves  backward"? 

6.  When  would  you  use  the  saying  "The  bigger  the  work  the  greater  the 
joy  in  doing  it"? 

7.  What  is  luck? 

8-    What  did  one  writer  say  was  the  secret  of  strength? 
9.     Explain  the  statement  that  "Folks  who  never  do  any  more  than  they 
get  paid  for  never  get  paid  for  anj"^  more  than  they  do." 

10.  Do  you  believe  that  "To  rest  content  with  results  achieved  is  the 
first  sign  of  business  decay"?    If  so,  why?    If  not,  why  not? 

11.  Do  you  agree  that  "The  only  man  who  never  makes  a  mistake  is  the 
man  who  never  does  anything"? 

12.  What  do  you  think  is  the  meaning  of  the  quotation  which  begins, 
"Our  doubts  are  traitors" — 

13.  Explain  what  is  meant  by  "  Failure  is  only  for  those  who  think  failure." 

14.  What  did  a  great  man  say  about  sleep? 

15.  What  is  the  way  to  get  things  done? 


CHAPTER  XVI 

STANDARDS  AND  TESTS  FOR  MEASURING 
YOUR  PERSONAL  EFFICIENCY 

THE  first  thing  we  ought  to  know  about  standards  is,  of 
course,  what  a  standard  is.  Now  there  are  all  sorts  of 
standards,  standards  of  size,  standards  of  quality,  standards 
of  quantity,  standards  of  speed,  standards  of  height,  and  many 
more.  But  a  standard,  of  whatever  sort  it  may  be,  always  has 
this  characteristic— it  is  something  by  which  we  can  measure 
something  else. 

One  kind  of  standard.  Perhaps  you  may  have  entered  a 
contest  at  some  time,  a  race,  for  instance.  Perhaps  there  was  a 
certain  record  you  were  out  to  beat,  say  8^  minutes.  That 
was  the  standard  time  by  which  you  were  to  judge  your  own 
running  and  measure  your  success.  If  you  finished  in  8  minutes, 
you  were  above  the  standard,  but  if  it  took  you  8V^,  you  were 
15  seconds  below  the  standard.  In  that  case  the  standard  was 
a  standard  of  speed. 

Or  say  you  are  building  a  fence  four  feet  high.  You  have 
boards  of  various  lengths,  some  six  feet  long,  some  three  feet, 
some  four.  Your  standard  is  four  feet — you  measure  all  the 
boards  by  that  standard  and  choose  only  those  that  equal  the 
standard.    Here  your  standard  is  a  standard  of  height. 

What  standard  methods  are.  Then  there  are  also  stand- 
ards of  method,  standard  ways  of  doing  certain  things.  For 
instance,  when  we  were  studying  about  the  correspondence  de- 
partment, we  learned  the  best  way  to  fold  letters  to  fit  window 
envelops.  That  method  is  the  standard,  the  best  method  of 
folding  letters  that  has  been  discovered  up  to  this  time.  Of 
course,  if  some  thoughtful  person  works  out  a  better  way,  his 
method  will  probably  become  the  standard. 

239 


240  OFFICE  TRAINING  AND  STANDARDS 

A  standard  method  can  be  found  for  every  operation  in  the 
office  as  well  as  in  our  daily  Hves  outside  of  business.  Whatever 
you  are  doing,  there  is  one  way  of  doing  it  that  is  best — best 
because  the  results  are  of  the  highest  quality  and  because  it 
takes  less  time  and  effort. 

When  you  fu'st  tried  to  learn  to  skate,  you  probably  have 
a  vivid  remembrance  of  how  difficult  it  was  and  how  you 
did  httle  but  stumble  along— until  you  suddenly  fell  into  the 
proper  stroke;  from  that  time  on  your  skating  improved  con- 
tinually and  you  began  to  go  faster  and  faster.  It  is  the  same 
way  with  playing  the  piano.  Until  you  acquire  the  skill,  the 
best  method,  what  is  called  technique,  your  playing  is  amateur- 
ish. But  when  you  have  once  reached  the  standard,  you  are 
beginning  to  be  a  real  musician. 

How  the  standard  is  set.  Whatever  you  are  doing  in  the 
office — if  it  is  only  addressing  envelops — there  is  one  method  that 
will  yield  the  best  results,  a  standard  method.  The  question 
now  is — how  to  find  the  standard.  The  first  step  is  to  analyze 
the  job,  whatever  it  may  be.  Take  the  window  envelop  again. 
The  expert  who  set  the  standard  may  have  spent  a  long  time  in 
the  mailing  room  before  he  drew  up  his  plans.  He  watched  girls 
folding  letters,  each  one  according  to  her  own  ideas.  Some  were 
fairly  speedy;  others  accomplished  about  half  as  much  as  the 
fastest  worker.  He  noticed  that  even  the  fastest  worker  went 
through  unnecessary  motions. 

Finally  he  worked  out  a  method  which  combined  the  best 
points  of  all  the  workers  and  omitted  useless  motions.  This 
method  then  became  the  standard.  He  even  took  photographs 
of  a  girl  folding  letters,  and  these  were  given  to  the  other  girls 
in  order  that  they  might  learn  the  standard  method.  Now  they 
are  all  working  according  to  the  same  plan. 

Standard  practice  instructions.  As  soon  as  the  standard 
method  has  been  determined,  instructions  for  performing  the 
operation  in  the  standard  way  are  written  down.  These  are 
called  standard  practice  instructions.  A  great  many  concerns 
today  have  standard  practice  books  or  office  manuals.  These 
books  contain  the  standard  practice  instructions  for  carrying 
on  all  the  work  of  the  office. 


PERSONAL  STANDARDS  241 

There  are  very  good  reasons  for  having  all  standard  practice 
instructions  written  out.  Written  instructions  are  one  of  the 
best  possible  methods  of  teaching  new  employees  their  work. 
If  there  are  no  written  instructions,  and  an  old  employee  leaves, 
the  manager  may  find  that  there  is  a  vacancy  to  be  filled  and 
that  no  one  in  the  office  is  famihar  with  the  work.  If,  on  the 
other  hand,  there  are  standard  practice  instructions  for  every 
job  in  the  office,  the  manager  can  turn  them  over  to  the  new 
employee  with  perhaps  a  word  of  advice  and  know  that  the 
employee  is  receiving  accurate  instructions. 

Standards  of  accomplishment.  Many  concerns,  in  addi- 
tion to  adopting  standard  methods,  set  a  standard  amount  of 
work  to  be  accomphshed  every  day — so  many  letters  to  be 
folded — so  many  square  inches  of  typewritten  matter  to  be  typed, 
and  so  on.  A  celluloid  scale  for  measuring  typewritten  matter 
is  used  for  just  this  purpose — to  measure  accurately  the  work 
of  the  typists  and  stenographers.  Those  who  reach  or  excel  the 
standard  rate  of  accomphshment  receive  more  money. 

How  standards  increase  efficiency.  Now  we  can  see  how 
standards  may  be  used  to  increase  the  efficiency  of  the  office  in 
providing  a  basis  for  determining  just  what  salary  each  em- 
ployee is  earning.  It  isn't  fair,  of  course,  for  a  worker  who  turns 
out  a  large  amount  of  work  to  be  limited  to  the  same  salary  as 
her  neighbor  who  does  considerably  less.  And  the  probability 
is  that  the  one  who  is  doing  less  work  could  do  much  better  if 
her  methods  were  more  efficient.  When  a  standard  method  is 
determined  upon — when  all  the  workers  are  instructed  in  the 
use  of  the  standard  method — then  there  is  no  injustice  in  ex- 
pecting a  uniform  amount  and  quality  of  work  from  all. 

How  you  can  use  standards.  You  see  then  that  a  stand- 
ard is  something  to  measure  by,  something  that  can  be  used  as 
a  model.  The  question  now  is — how  can  you  yourself  make  use 
of  standards?  The  answer  is  so  simple  that  you  have  probably 
guessed  it  already.  You  can  use  standards  to  measure  yourself, 
measure  your  accompHshments,  your  knowledge,  your  accuracy, 
your  speed.  And  so  you  will  learn  just  where  you  are  succeeding, 
where  you  are  failing,  which  part  of  your  work  is  up  to  the 
standard,  and  which  part  needs  improvement. 


242  OFFICE  TRAINING   AND   STANDARDS 

Certain  tests  have  been  devised  by  which  you  can  determine 
how  nearly  you  measure  up  to  the  standard  of  accompUshment. 
The  test  which  follows,  for  instance,  forms  a  basis  for  measuring 
the  quality  of  your  memory  and  attention. 

STANDARD  TESTS 

Tests  for  memory  and  attention 
If  you  use  the  muscles  of  your  arm  they  will  grow  strong,  but  if  you  tie 
your  arm  up  in  a  sling  your  muscles  will  grow  flabby  and  weak,  no  matter  how 
much  you  desire  to  have  them  strong.  If  you  do  not  use  your  mind  you  cannot 
expect  it  to  develop  any  more  than  your  arm  would  grow  strong  in  a  sling. 
If  you  wish  to  see  what  you  can  do  in  the  way  of  mind  training,  practice  these 
exercises  and  make  a  record  of  your  improvement  from  time  to  time. 

1.  As  you  walk  by  a  show  window  observe  as  many  articles  as  you  can 
and  see  how  many  you  can  recall  afterward. 

2.  While  riding  in  a  street  car  observe  six  or  more  advertisements.  Close 
your  eyes  and  see  how  many  you  can  remember. 

3.  Whenever  you  meet  a  stranger  try  to  associate  his  name,  face,  or  some 
striking  characteristic  with  some  known  fact  and  remember  the  name  as  well 
as  the  face  by  the  association  of  ideas.  It  is  a  valuable  asset  in  business  to  be 
able  to  remember  names  and  faces. 

4.  Have  some  one  read  to  you  numbers  which  contain  six  or  more  figures 
and  see  how  many  figures  you  can  repeat  without  a  mistake. 

5.  Read  the  following  three  words  carefully  once;  then  close  the  book 
and  repeat  each  word:   incomprehensibility,  phthisic,  parallelopipedon. 

6.  After  reading  the  following  instructions  carefully  close  the  book,  and 
follow  the  instructions  without  any  error.  Draw  a  square,  a  circle,  and  an 
equilateral  triangle,  each  one  inch  in  diameter.  Connect  the  lower  left-hand 
corner  of  the  square  with  the  lower  right-hand  corner  of  the  triangle.  If  the 
area  of  the  circle  is  greater  than  the  area  of  the  square  draw  a  dot  in  the  center 

of  the  circle.  . 

7.  Draw  a  square,  a  rectangle,  a  parallelogram,  and  a  parallelopipedon 
and  have  only  one  figure  when  finished.  Refer  to  the  dictionary  if  you  do  not 
know  the  meaning  of  the  words. 

8.  Draw  a  horizontal  line  two  inches  in  length  and  bisect  it.  From  the 
right  extremity  of  the  line  draw  a  perpendicular  one  inch  in  height.  Connect 
the  upper  extremity  of  the  perpendicular  with  the  point  of  bisection  in  the 
original  line.  From  the  left  extremity  of  the  original  line  drop  a  perpendicular 
one  inch  in  length.  From  the  extremity  of  the  last  perpendicular  drawn,  con- 
nect the  point  of  bisection  of  the  original  line.  Without  rereading  these 
instructions,  draw  the  figure. 

What  you  can  do  with  words.  You  will  find  that  a  good 
grasp  of  words,  of  synonyms  and  antonyms  and  homonyms,  will 


PERSONAL  STANDARDS  243 

be  a  valuable  help  to  you  in  business  as  almost  everywhere  else. 
If  you  should  become  a  stenographer,  you  will  have  to  know  the 
meanings  of  words,  how  they  are  spelled,  and  the  difference  in 
meaning  between  words  that  sound  alike  but  are  spelled  differ- 
ently. Even  more  will  you  need  a  good  vocabulary  if  you  should 
happen  to  become  a  correspondent.  Try  out  your  vocabulary 
by  taking  this  test.    You  should  be  able  to  finish  it  in  10  minutes. 

STANDARD  TESTS 

A  test  of  your  vocabulary 
Write  a  suitable  synonym  (similar  meaning)  after  each  word: 


1. 

contract 

2. 

amount 

3. 

account 

4. 

frequent 

5. 

permanent 

6. 

abandon 

7. 

efficient 

8. 

finish 

9. 

accurate 

10. 

condemn 

11. 

approve 

12. 

receive 

Write  a  suitable 

1. 

income 

2. 

similar 

3. 

debit 

4. 

assets 

5. 

accept 

6. 

censure 

7. 

simple 

8. 

deficit 

9. 

profit 

10. 

reliable 

11. 

prompt 

12. 

agreement 

Write  a  suita 

1. 

capital 

2. 

dun 

3. 

heard 

4. 

route 

6. 

rap 

13. 

economize 

14. 

exchange 

15. 

.sufficient 

16. 

customer 

17. 

postpone 

18. 

slaughter 

19. 

dishonest 

20. 

argument 

21. 

necessary 

22. 

durable 

23. 

discount 

24. 

prosper 

eani 

ng)  after  eac 

13. 

intelligent 

14. 

difficult 

15. 

separate 

16. 

diminish 

17. 

valuable 

18. 

shortage 

19. 

punctual 

20. 

sensible 

21. 

surety 

22. 

wasteful 

23. 

deposit 

24. 

bankrupt 

r  sound)  after  ea^ 

6. 

allowed 

7. 

principal 

8. 

canvas 

9. 

peel 

10. 

counsel 

244  OFFICE  TRAINING  AND  STANDARDS 


11. 

seize 

12. 

weighed 

13. 

stationery 

14. 

steel 

15. 

clause 

If). 

straight 

17. 

leased 

18. 

currant 

19. 

lien 

20. 

medal 

21. 

waste 

22. 

bail 

23. 

plum 

24. 

loan 

When  errors  may  be  costly.  Even  in  such  apparently 
simple  operations  as  addressing  envelops,  copying  names,  and 
filing  cards  alphabetically,  there  is  a  standard  of  accompUshment 
by  which  you  can  measure  your  work.  The  standard  speed  set 
for  the  following  exercise  is  100  an  hour  on  the  typewriter  or  250 
an  hour  with  a  pen.  However,  never  sacrifice  accuracy  to  speed. 
A  record  of  even  400  an  hour  means  nothing  if  your  work  is 
untidy  or  inaccurate.  A  slight  error  in  speUing  a  customer's 
name  or  address  may  mean  the  loss  of  that  customer's  business. 

STANDARD  TESTS 

Testing  accuracy,  speed,  neatness,  and  punctuation 
in  copying  addresses  for  mailing  and  filing 
Copy  each  of  these  names  and  addresses  on  one  side  of  a  3  by  5  card  just 
as  you  would  on  an  envelop,  punctuating  properly,  and  abbreviating  where 
it  is  logical.  On  the  other  side  of  the  card  arrange  the  name  and  address  in 
the  best  form  for  filing  alphabetically.  Mark  the  exact  number  of  minutes 
it  takes  you  to  write  all  the  names  and  addresses,  stating  whether  you  used 
a  pen  or  a  typewriter.  An  easy  way  to  keep  time  is  to  write  down  the  time 
when  you  start  and  again  when  you  finish.  A  fair  typist  can  address  100  or 
more  envelops  an  hour — addressers  using  a  pen  can  do  250  an  hour. 

1.  T  B  Bridges  Manager  Heald-Dixon  College  Oakland  California 

2.  Bishop  Paul  Restarick  Honolulu  Territory  of  Hawaii 

3.  James  F  Smith  Esquire  1786  Magnolia  Avenue  Denver  Colorado 

4.  Charles  V  Bloomington  Attorney  Little  Rock  Arkansas 

5.  Mrs  Margaret  W  Eaton  957  East  24th  Street  New  York 

6.  Captain  John  S  Moore  231  Beemis  Court  Omaha 

7.  Mr  W  E  G  Foster  Manila  Philippine  Islands 

8.  George  N  Carter  Secretary  Olympia  Flour  Mills  Olympia  Washington 

9.  Benjamin  I  Wheeler  President  First  National  Bank  Des  Moines  Iowa 

10.  Doctor  William  A  Wright  141  Cambridge  Place  Brooklyn  New  York 

11.  Honorable  Peter  Williams  Providence  Rhode  Island 

12.  Miss  Gertrude  Hunter  Fond  du  Lac  Wisconsin 

13.  Thomas  A  Cook  and  SOns  56  Ludgate  Circus  London  England 

14.  Nathanial  O  Perry  Senior  71S2  West  Sycamore  Street   St   Louis 

15.  Maurice  L  Bond  Junior  Burlington  Vermont 


PERSONAL  STANDARDS  245 

16.  Colonel  Claude  Conrad  Salt  Lake  City  Utah 

17.  Messrs  Judd  and  Todd  Washington  District  of  Columbia 

18.  Mr  Earl  A  White  Santa  Fe  New  Mexico 

19.  Reverend  Matthew  2  Taylor  Fort  Wayne  Indiana 

20.  Mrs  W  B  Manson  1373  Union  Street  Schenectady  New  York 

21.  A  P  Johnson  Assistant  Secretary  Northern  Life  Company  Portland 

22.  Miss  Cora  A  Thompson  Anchorage  Alaska 

23.  Arnold  J  Bates  President  Arrow  Mining  Company  Reno  Nevada 

24.  Mr  Homer  K  Baldwin  Charleston  South  Carolina 

25.  William  R  Edwards  Postmaster  El  Paso  Texas 

26.  Mr  Hugh  T  Jones  Huntington  West  Virginia 

27.  H  E  Parish  and  Sons  Cumberland  Maryland 

28.  Mr  Joseph  O  Davis  Grand  Rapids  Michigan 

29.  Mr  F  E  Davis  Care  of  Bach  and  Land  Boise 

30.  Marshall  Field  and  Company  Chicago  Illinois 

31.  Mr  Walter  C  Dole  East  Orange  New  Jersey 

32.  Mr  Oscar  A  Wilde  Paducah  Kentucky 

33.  Bach  and  Buhl  Lebanon  Oregon 

34.  Miss  Kate  Fronsdal  Bergen  Norway 

35.  Mr  Daniel  Forest  Pittsburgh  Pennsylvania 

36.  Mr  Harry  T  Coons  Richmond  Virginia 

37.  Robert  E  Forbes  Attorney  General  Hartford  Connecticut 

38.  Miss  Nina  D  Langdon  Kobe  Japan 

39.  Mrs  Belle  Hart  Sheffield  England 

40.  Right  Reverend  Patrick  J  Reilly  Rector  St  Anthonys  Church  Cohasse 

41.  Harvey  B  Black  Doctor  of  Medicine  Auburn  Maine 

42.  Mr  Herman  Small  Birmingham  Alabama 

43.  Lieutenant  L  K  Moore  Oklahoma  City  Oklahoma 

44.  Miss  Juliah  S  Snow  83  Bryne  Mawr  Terrace  Omaha  Nebraska 

45.  Mr  Lewis  A  Stone  Nashville  Tennessee 

46.  Albert  Maxwell  Civil  Enginer  United  States  Navy 

47.  Gordon  and  Company  Newark  Ohio 

48.  Mr  Franklin  Y  Gault  Phoenix  Arizona 

49.  Mutual  Life  Insurance  Company  Daj^ton  Ohio 

50.  The  National  Paper  Company  Atlanta  Georgia 

Do  you  know  how  to  make  figures?  Almost  any  sort  of 
office  work  you  do  will  require  to  a  greater  or  less  extent  the 
use  of  figures.  It  is  very  important,  therefore,  that  you  should 
be  accustomed  to  make  figures  rapidly,  accurately,  and  legibly. 
Especially  if  you  are  placed  in  an  accounting  department  you 
will  find  that  perhaps  promotion  itself  may  at  some  time  depend 
on  the  figures  you  make. 

There  is  no  reason  to  be  discouraged,  however,  if  you  feel 
that  your  figures  now  are  not  up  to  the  standard.    That  is  what 


246  OFFICE  TRAINING  AND  STANDARDS 

a  standard  is  for — to  give  you  a  goal  toward  which  to  work. 
And  if  you  try  conscientiously  to  improve  there  is  no  reason  why 
you  should  not  succeed.  Practice  making  figures  with  these 
suggestions  in  mind,  and  see  if  you  do  not  notice  an  improvement. 

PENMANSHIP  STANDARDS 

How  to  make  or  not  make  figures 

1.  Improve  your  spare  moments  by  practicing  the  making  of  figures 
with  a  muscular  movement;  that  is,  use  your  whole  arm,  not  just  your  fingers. 

2.  If  you  wish  to  improve  rapidly,  become  interested  in  your  practice 
and  compare  your  work  today  with  what  you  did  yesterday. 

3.  Be  sure  to  make  all  figures  with  the  same  slant  you  use  in  writing. 

4.  You  should  be  able  to  make  neat,  legible  figures  at  the  average  rate 
of  60  a  minute. 

5.  Accuracy  and  legibility  are  the  first  essentials  in  making  figures. 

6.  Speed  and  neatness  with  an  artistic  appearance  are  commendable. 

7.  Observe  how  practical  bookkeepers  or  clerks  make  their  figures  and 
correct  your  own  where  you  can  make  any  improvement. 

8.  Here  is  a  set  of  figures  made  by  a  penman  for  you  to  use  as  a  model : 

9.  Observe  that  the  figures  are  not  all  the  same  height.  The  7  and  9 
extend  below  the  line  and  the  zero  is  about  as  high  as  the  9,  while  the  stem  of 
the  6  extends  above  the  others. 

10.  Do  not  make  a  hook  when  beginning  the  1  or  it  may  look  like  the  7. 

11.  Use  care  in  making  the  2  or  it  will  not  be  the  same  slant  as  the  other 
figures.    Do  not  make  it  back-hand  or  vertical. 

12.  The  lower  part  of  the  3  should  be  twice  as  large  as  the  upper  part. 

13.  There  are  four  things  to  observe  in  making  the  4.  The  first  stroke 
is  a  short  straight  line  and  comes  nearly  to  the  base  line.  The  second  line  is 
about  twice  as  long  as  the  first,  but  is  straight  and  parallel  with  the  base  line. 
The  third  line  is  about  the  same  length  as  the  second  with  a  slight  curve  but 
practically  parallel  with  the  first  line. 

14.  The  lower  part  of  the  5  may  be  made  like  the  lower  part  of  the  3, 
but  the  button-hook  or  fish-hook  style  generally  increases  the  speed. 

15.  Do  not  try  to  make  the  4's  or  5's  without  taking  the  pen  from  the 
paper,  lest  your  4's  look  like  7's  or  9's,  and  your  5's  be  taken  for  3's. 

16.  Do  not  begin  the  6  with  a  curve  like  the  zero,  nor  finish  with  a  large 
loop  at  the  bottom,  or  your  figure  may  look  like  a  zero. 

17.  Do  not  make  any  extra  hooks  on  the  7,  as  it  is  a  waste  of  time. 

18.  Do  not  make  the  8  backward  or  it  may  look  like  the  zero. 

19.  The  loop  of  the  9  may  be  placed  on  the  line,  but  do  not  extend  the 
stem  so  far  below  the  line  that  it  will  interfere  with  other  figures. 


PERSONAL  STANDARDS 


247 


20.  Make  the  zero  small,  round,  or  egg-shaped.  It  will  not  only  appear 
more  artistic  but  will  avoid  confusion  with  the  6. 

Accuracy  is  required  in  this  work.  The  next  test  will 
give  you  an  opportunity  to  test  your  ability  not  only  in  making 
figures  but  also  in  using  them.  If  you  work  in  an  accounting 
department,  you  will  probably  be  asked  to  do  some  billing.  In 
that  work  you  must  have  your  multipUcation  tables  at  your 
finger  tips,  and  be  able  to  add  columns  of  figures  quickly  and 
correctly.  The  following  exercise  in  billing  furnishes  a  good  test. 
You  should  be  able  to  do  it  in  four  minutes.  Time  yourself  and 
see  how  nearly  your  score  reaches  the  standard  not  only  of  speed 
but  also  of  accuracy. 


STANDARD  TESTS 

To  test  accuracy  and  speed  in  billing 

Time — 4  minutes— allow  3  points  for  each  correct  product,  and  8H  points 
for  each  correct  total.    Possible  score  100. 
Find  the  cost  of: 

240     lbs.  table  salt @    2^4^. 

320      lbs.  granulated  sugar @    6}4i- 

117     lbs.  rice @  11  1/ 

125  lbs.  Rio  coffee @  28ji 

250     lbs.  Mocha  coffee ©24^5 

144      lbs.  dried  apples @    83^0. 

SH  lbs.  dried  beef @  36^5 

450  lbs.  codfish @    GU 

IHlbs.  bacon @  42(i 

373/^  lbs.  chocolate @  32^ 

126  lbs.  Young  Hyson  tea @  66^i 


> 


Total. 


160 
175 
500 
328 
243 


bu.  wheat @  $1,123/^ 


bu.  clover  seed 
bu.  timothy  seed 

bu.  corn 

bu.  rye 

187H  bu.  oats 

128  4/7  bu.  potatoes. . . 

1833^  bu.  millet 

110     bu.  beans 

Total 


248  OFFICE  TRAINING   AND   STANDARDS 

256  horses at  $125.00 

312  mules at    166.66§ 

128  wagons at    250.00 

231  trucks at    333.33^ 

240  automobiles at    750.00 

Total 


This  is  easier  than  it  looks.  You  may  also  be  called  upon 
to  add  sales  slips,  to  subtract  a  customer's  payment  from  the 
amount  he  owes,  to  find  the  average  cost  of  one  article  when  the 
given  price  is  for  gross  lots,  or  to  multiply  the  price  of  an  article 
by  the  number  sold.  The  test  which  follows  will  perhaps  help 
to  show  you  how  well  you  are  fitted  to  do  that  kind  of  work. 
In  each  case  the  standard  of  attainment  is  100  points  in  10 
minutes.     How  far  above  the  standard  can  you  go? 

STANDARD  TESTS 

Fundamental  processes  in  rapid  calculation 
Do  not  spend  more  than  one  minute  for  each  group.     Allow  one  point  for 
each  individual  problem  correctly  solved,  but  you  may  allow  one  point  for 
each  column  in  addition  and  one  point  for  each  digit  in  the   long-division 
answers.    A  total  of  100  points  is  the  standard  score. 

ADDITION  SUBTRACTION 

Possible  points  15— Standard  10  Possible  points  20— Standard  10 

786       947       687       798  679  5386       9256       7635       8372      9246 

843       586       734       386  756  2387       3478       5697       2479       2057 

956       753       695       759  835 

328       679       378       834  397 

596       285       576       748  756 

877       836       748       986  675 

485       673       863       865  899 

758       898       975       289  685 

669       676       589       653  678 


DIVISION 
Time  1  minute— Possible  points  30— Standard  10— Record 

19775-4-25  9950  H- 50  31200-75  25480^80  9876^12 

9135-^45  15696^48  52542^63  25038^39  43239^71 


9637 

6364 

8253 

4246 

8372 

2848 

3695 

2897 

3897 

3579 

6546 

5257 

8558 

7562 

8463 

3748 

3568 

1969 

3795 

2795 

9645 

5583 

9754 

6345 

7356 

4578 

2695 

2958 

2567 

3458 

PERSONAL  STANDARDS  249 

CROSS  MULTIPLYING 

Time  1  minute — Possible  points  20 — Standard  10 — Record 

95  37  77  74  84  65  43  55  81  17 

95  88  91  76  24  35  44  49  99  66 


25  50  75  41  19  51  33  91  88  39 

7783364577  5899812667 

EXTENSIONS 

Time  1  minute — Possible  points  20 — Standard  10 — Record 

.10  X    1927        =              45  X     .13  1/3=  .20  X  156 

184  X       .25        =               24x1.162/3=  .75  X  28 

.40  X        85        =              Six     .098/9=  1.20  X  45 

2.25  X        24        =               45  X     .26  2/3=  .375  X  56 

96  X  .0625        =               27  X  1.33  1/3=  24  X  .875 

48  X  .1875        =              42  X     .24  5/6=  32  X  .5625      = 

75  X      .06  2/3=  36  X  .66  2/3  = 


EXTENSIONS 

Time  1  minute — Possible  points  18 — Standard  10 — Record 

1/5  X  15        =                  15         X       2/3   =  3/4  X  36 

35         X       5/9=                       2/3  X       4/5   =  3/4  x       8/9  = 

3/4  X    11/3=                    6  1/4X       4/5=  3/5  X       4/6  = 

12  1/2  X    7        =                    7         X    6  1/4=  7  1/2  X    7  1/2  = 

9  1/2  X    8  1/3=                    8  4/5  X    7  3/10=  8  1/5  X    6  3/5  = 

24         X    9  7/8  =                  28         X  24  6/7   =  36         X  49  8/9  = 

ADDING  FRACTIONS 
Time  1  minute — Possible  points  15 — Standard  10 — Record 

1/8+       1/7=  1/5+         1/6=  1/5+     1/4+     1/2  = 

3/4  +       7/8=  2/3  +         4/5=  2/3  +     3/4  +     1/4  = 

111/2+58  1/3=  10  1/2+    16  3/4=  2  2/3  +  1         +2  1/2  = 

17         +25  3/5=  6  2/3+    46  2/3=  11/2+21/3+3 

44  4/9+22  2/9=  16  3/4  +  124        =  11/4  +  11/2  +  13/4  = 

SUBTRACTING  FRACTIONS 

Time  1  minute — Possible  points  15 — Standard  10 — Record 

1/6—       1/7=                        1/5—         1/9=  2/3—       1/4  = 

3/4—       3/8=                     7  1/2—     5  1/3=  8  1/4—   2  3/4  = 

9        —      3/5=                     9        —     2  1/2=  6  3/4—3 

26  2/3  —  13  1/3=        37  1/2—  12  1/2=  62  1/2—12  1/2  = 

25/3  —  8  1/3=       33  1/3  —  100/3  =  73  1/3—  6  2/3  = 


250 


OFFICE  TRAINING  AND  STANDARDS 


FINDING  100%  FROM  FRACTIONAL  PARTS 
Time  1  minute — Possible  points  18— Standard  10 — Record 


12 

-     2/3  = 

7/6  - 

-  1  1/6  = 

11  1/4  - 

-  1  1/4  = 

9 

-    1/12  = 

16 

-     2/9  = 

2  1/3  - 

-3 

15 

-     3/5  = 

2  1/3  - 

-2  4/5  = 

8  4/5  - 

-2  1/5  = 

45 

-     5/6  = 

24 

-   2/11  = 

12 

-    2/15  = 

FINDING    100%   FROM   DECIMAL  PARTS 
Time  1  minute— Possible  points  18— Standard  10— Record 


197  -e-     .  10 

45  - 

-     .25 

35  - 

-1.25 

15  - 

-     .06  2/3  = 

3.6  - 

-     .375      = 

10  - 

-     .10 

73 

•4- 

.20 

33 

-f- 

.75 

45 

■i- 

.625 

24 

-T- 

.66  2/3 

.01 

-j- 

10 

1.6 

-r- 

.0625 

5/6-^5 

11          -^      1/9  = 

3  1/3  4-2  1/2  = 

45          ^     5/8  = 

80          ^    5/16  = 

25  1/4^3 
ARTS 

123  ^     .60 

27  - 

-1.50 

45  - 

-     .9375 

28  - 

-     .93  1/3     = 

3.9  - 

-     .8125 

100  - 

-     .001 

An  easy  way  to  figure  interest.  Problems  in  interest  are 
constantly  coming  up  in  every  business.  When  money  is  lent 
or  borrowed,  interest  must  be  reckoned.  An  easy  method  of 
figuring  interest  is  in  common  use.  Since  6%  is  the  usual  interest 
charged,  we  start  with  that.  To  find  the  interest  on  any  amount 
for  60  days  at  6%  we  simply  move  the  decimal  point  two  places 
to  the  left— that  is,  the  interest  on  $250  for  60  days  at  6%  is 
$2.50,  for  6  days  $.25,  and  so  on.  Here  are  some  interest  problems 
which  can  be  solved  by  this  simple  method.  Time  yourself — you 
should  be  able  to  finish  the  25  problems  in  from  5  to  7  minutes. 


Number 
1 
2 
3 
4 
5 
6 
7 


10 


STANDARD  TESTS 

Problems  in  simple  interest 

Principal  Years      Months  Days 

$350.00     6 

S575.00     60 

$120.00     75 

$425.00     40 

$450.00     63 

$675.00     80 

$144.00     121 

$735.00     120 

$480.00     125 

$824.50     720 


Rate  Interest 

6%       

6%       

6%       

9%       

8%       

4M%       

5%       

3%       

6%       

5%       


PERSONAL  STANDARDS  251 

Number  Principal       Years      Months       Days         Rate  Interest 

11  $630.00     141  4%       

12  $275.75     6000  6%       

13  $435.00     2  12  10%       

14  $375.00     4  24  5%       

15  $480.00     2  20        7H%       

16  $273.50     9  18  5%       

17  $275.00     4  15  8%       

18  $385.00     7  6  5%       

19  $425.00     10  20  9%       - 

20  $287.50  1  4         6%       • 

21  $367.50  1  3         8%       • 

22  $800.00  1  4  15  4%       • 

23  $500.00  2  2  12  5%       

24  In  what  time  will  $337.50  double  itself  at  10%?        

25  In  what  time  will  $535.75  double  itself  at    8%?        


Can  you  do  these  in  your  head?  A  salesman  in  a  retail 
store  is  constantly  called  upon  to  figure  problems  in  arithmetic. 
He  cannot  always  stop  to  write  them  down  on  paper,  but  must 
often  work  them  out  mentally.  Usually  the  problems  will  be 
fairly  simple,  but  even  simple  ones  require  mental  alertness  and 
accuracy.     Have  someone  read  these  problems  to  you. 

STANDARD  TESTS 

Problems  in  mental  arithmetic 

1.  How  many  lemons  at  5  cents  each  can  I  get  in  exchange  for  18  eggs 
at  18  cents  a  dozen? 

2.  John  is  4  feet  in  height ;  James  is  6  inches  taller  than  Henry ;  and  Henry 
is  6  inches  taller  than  John.     How  much  taller  is  James  than  John? 

3.  If  three-fourths  of  a  yard  of  cloth  costs  three-fourths  of  a  dollar,  how 
much  will  3M  yards  cost? 

4.  Marj'  is  6  years  younger  than  Jane,  and  Jane  is  5  years  older  than  Ann. 
If  Ann  is  10,  how  much  older  is  Ann  than  Mary? 

5.  If  a  herring  and  a  half  costs  a  cent  and  a  half,  what  will  a  dozen  and 
6  herring  cost? 

6.  Ted  can  beat  Fred  by  3  yards  in  a  race  of  100  yards.  Ned  can  beat 
Fred  by  5  yards  in  a  race  of  the  same  distance.  How  many  yards  can  Ned 
beat  Ted  in  running  100  yards? 

7.  If  you  cut  30  yards  of  cloth  into  one-yard  pieces,  and  cut  one  yard 
every  day,  how  long  will  it  take? 

8.  Mr.  Brown  sold  a  horse  for  $90  and  bought  it  back  again  the  next  day 
for  $80.  On  the  following  day  he  resold  the  horse  for  $100.  How  much 
profit  did  Mr.  Brown  make? 


252  OFFICE  TRAINING  AND  STANDARDS 

9.  I  sold  three-fourths  j'ard  of  cloth  for  75  cents.  If  I  sold  three-fourths 
of  a  yard  for  what  one  yard  cost  me,  how  much  will  I  gain  per  yard? 

10.  A  stranger  bought  a  hat  for  $3  and  paid  for- it  with  a  §20  bill.  The 
merchant  not  having  change  obtained  it  at  the  nearest  bank  and  gave  the 
stranger  S17  and  the  hat.  The  bank  soon  discovered  that  the  bill  was  counter- 
feit and  required  the  merchant  to  replace  it  with  $20  of  good  money.  How 
much  did  the  merchant  lose? 

11.  If  it  takes  one  minute  for  a  man  to  saw  a  board  into  two  pieces,  how 
long  will  it  take  the  same  man,  sawing  at  the  same  rate,  to  saw  a  similar  board 
into  24  pieces? 

12.  If  telephone  poles  are  set  4  rods  apart,  how  many  poles  will  it  take 
to  string  a  line  one  mile  long?    There  are  320  rods  in  a  mile. 

13.  A  girl  began  working  her  problems  at  11:45  a.  m.,  and  finished  them 
at  1:15  p.  m.    How  long  did  it  take  to  work  the  problems? 

14.  A  boy  is  standing  on  the  shore  of  a  circular  pond.  The  distance 
around  it  is  634  miles  and  the  greatest  distance  across  it  is  2  miles.  What 
is  the  least  distance  the  boy  can  walk  to  reach  a  point  directly  opposite  the 
spot  where  he  is  standing? 

15.  A  boy  was  asked  how  many  fish  he  had  caught.    He  answered:    "If 

1  catch  this  one,  which  is  biting,  and  half  a  dozen  and  a  dozen  more,  I  will 
then  have  19."    How  many  did  he  have? 

16.  Ted  and  Fred  had  an  equal  number  of  marbles.  Ted  lost  several  of 
his.  If  he  tells  you  how  many  he  lost  and  how  many  they  both  together  then 
had,  how  can  you  find  how  many  each  had  at  first? 

17.  Mr.  Brown  hired  an  automobile  for  $8  to  make  a  trip  from  A  to  B  to 
C  and  return.  The  distance  from  A  to  B  is  12  miles,  and  from  B  to  C  12  miles, 
making  a  total  of  48  miles  to  travel.  At  B  Mr.  Smith  got  permission  to  ride 
with  Mr.  Brown  from  B  to  C  and  return  on  condition  that  he  should  pay  his 
share  of  the  automobile  charges.    How  much  should  each  man  have  paid? 

18.  John  bought  60  oranges  at  2  for  a  cent  and  60  more  at  3  for  a  cent. 
He  sold  all  at  5  for  2  cents.    How  much  did  he  gain  or  lose? 

19.  What  is  the  highest  point  a  boy  can  reach  while  standing  on  a  box 

2  feet  X  3  feet  x  4  feet?  The  boy  is  4  feet  in  height  and  can  reach  one 
foot  above  his  head,  but  he  must  not  stand  on  tip-toe  or  prop  up  the  box  or 
use  any  other  means  of  elevating  himself  or  the  box. 

20.  I  have  a  certain  number  of  apples  and  my  brother  has  a  smaller 
number.  How  shall  I  find  how  many  I  must  give  him  so  that  each  may  have 
the  same  number? 

When  time  is  money.  Tests  have  recently  been  made  in 
office  work  showing  that  with  increased  speed  comes  greater 
accuracy.  It  is  true  that  accuracy  should  come  before  speed, 
but  the  slow  workers  are  not  always  the  most  accurate,  while  the 
best  workers  are  always  speedy.  Do  not  form  the  habit  of 
working  slowly,  lest  you  think  you  can't  do  any  better. 


A  SCORE  CARD 

For  recording  the  improvement  in  your  work 

How  to  use  this  card 

In  column   1   write  the 
date  you  make  your  test. 
In  column  2  put  down  the 
time  you  start  the  test  and 
in  column  3  the  time  you 
finish.  The  number  of  min- 
utes (in  column  4)  is  the 
difference  between  columns 
1  and  2.  Put  the  number 
of  errors  in  column   5   and 
in  column  6  the  number  of 
points  you  make.     As  your 
work  improves,    the  num- 
ber of  errors  v/ill,  of  course, 
decrease,   and  the  number 
of  points  will  increase. 

Name         "/< 
Began  recorc 

^^^-V-tAjC       Kh^r.^O-txy-7\  J 

x^t/tt^.^  Finished  record  T^um/?.5 

1 

Date  of 

test 

2 
Time 
started 

3 

Time 
finished 

4 

Number 
of  minutes 

5 
Number 
of  errors 

6 

Number 
of  points 

7 

Checked 

by 

4*ft.J 

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10 -.to 

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FIGURE  86:    When  you  record  your  progress  on  a  score  card  like  this,  you  can 

see  just  how  fast  you  are  improving  from  time  to  time.     The  illustration  at  the 

bottom  of  this  page  shows  how  to  make  a  chart  of  your  improvement. 


Improvement  Graphs  of   rUsti^^  f'dAjyij>^r\/\n  CLn.^::tl\y>^nJXL<j 


Chart  A,  showing  Accuracy 


M    1    1    1    1    1    1    1    1    1    1    1    1 

- 

This  graph  shows  the  number 
of  errors  made  in  each  test  When 
compared  with  Chart  B  it  shows 
the    increase    in    your     accuracy 
which  accompanies  an  increase  in 
your  speed. 

- 

s; 

n 

' 

\ 

\ 

/ 

\ 

N 

\ 

^ 

N      rr^Ko,-     Lr     TTr, 

ors 

\ 

■ 

■ 

" 

\ 

3    4     5    6     7     8    9 
Test  Number 


Chart  B,  showing  Speed 


1    1    1    1    1    M    1    1 

I 

j 

- 

This  graph  shows  the 
number  of  points  made 
in  each  test.  Since  each 
test  lasts  exactly  10  min- 
utes.this  chart  shows  the 
increase  in  your  speed. 

1 

/ 

/ 

j 

/ 

r 

/ 

/ 

/ 

/ 

y 

/ 

^ 

/ 

^ 

er 

of 

'oint 

"" 

2     3    4     5     6     7    8     9   10UJ2  13 
Test  Number 


FIGURE  87 :     This  is  a  '  'picture  "  of  the  progress  shown  by  the  score  card.     Robert 

Brown  made  12  errors  on  test  Number  1  and  only  two  on  test  Number  13.     He 

secured  17  points  on  test  Number  1  and  100  points  on  test  Number  13. 

253 


254  OFFICE  TRAINING  AND  STANDARDS 

WTiile  you  are  practicing  to  improve  your  speed  and  accuracy 
in  making  figures,  writing,  typing,  computing,  or  any  other  office 
work,  keep  an  exact  record  of  what  you  can  do  and  check  your- 
self up  from  time  to  time  by  keeping  a  record  or  a  graph  of  your 
work  to  show  the  improvement  you  are  making.  On  page  253 
are  shown  two  ways  you  can  keep  tab  on  your  work. 

A  good  illustration  of  the  value  bankers  place  on  speed  and 
accuracy  is  shown  in  the  clearing-house  rules  of  a  large  city. 
The  following  rules  are  copied  from  the  Chicago  Clearing  House 
scale  of  fines : 

All  errors  in  settling  clerks'  statements  not  reported  to  the  manager  within 
20  minutes  from  the  time  of  beginning,  whether  of  footing  or  entry — $2. 

All  other  errors,  each — $2. 

For  all  errors  remaining  undiscovered  at  the  expiration  of  one  hour  from 
commencing,  the  fines  will  be  doubled — ($4),  and  at  the  expiration  of  one 
and  one-half  hours  the  fines  will  bequadrupled — $8. 

Any  member  failing  to  be  properly  represented  punctually  at  the  morn- 
ing exchanges: 

For  the  first  5  minutes  or  part  thereof,  13. 

From  5  to  10  minutes  late,  $10. 

Over  10  minutes  late,  $25. 

Debtor  members  failing  to  pay  their  balances  by  the  hour  fixed  for  that 
purpose: 

For  the  first  5  minutes  or  part  thereof,  $3. 

From  5  to  15  minutes  late,  $10. 

Over  15  minutes  late,  $25. 

Two  tests  of  your  ability.  The  next  two  tests  are  in- 
tended to  test  your  thoughtfulness,  your  mental  alertness,  and 
your  abiUty  to  concentrate  your  attention.  The  first  test  is 
given  by  one  department  store  to  all  applicants  for  positions. 

STANDARD  TESTS 

A  test  for  department-store  employees 
Time — 10  minutes 
Read  these  directions  through  carefully.    Then  do  what  the  directions 
tell  you  to  do. 

A  girl  went  to  a  store  to  buy  herself  a  dress.  She  must  have  as  much  as 
9  yards,  27  inches  wide,  or  7  yards,  36  inches  wide;  or  4H  yards,  54  inches 
wide.  She  must  not  spend  less  than  $8  or  more  than  $12.  It  would  be  all 
right  for  her  to  buy  a  piece  larger  than  needed  if  it  did  not  cost  more  than  $12. 
She  could  wear  any  color  except  purple  or  yellow. 


PERSONAL  STANDARDS  255 

Each  piece  is  a  remnant,  and  she  must  buy  the  entire  piece.    Mark  the 
ones  she  could  buy  "yes,"  mark  the  ones  she  should  not  buy  "no." 

Yes  or  No  Yards  long   Inches  wide  Price  a  yard  Color  Cost 

1       6 36 $1.50 Brown 


2 8 36 1.25 Gray... 

3 m 54 1.60 Blue... 

4 6 54 2.25 Brown. 

5,     ','.'...    9M 27 1.00 Black.. 

41^ 54 2.00 Yellow. 


7 4 54 2.75 Green. 

S 41^ 45 2.50 Green, 

9'     6     36 1.50 Gray... 

10 9  1/11 27 1.10 Blue... 

11 7 45 1.95 Black.. 

12!     !.^'^    111/9 27 90 Pink... 

13 7H 36 1.80 Gray... 

14 14  2/7 27 70 Purple. 

15 4M 54 1.60 Blue... 

16 6 30 1.75 Red.  .  . 

17 4H 54 2.20 Pink. . . 

18 7K 36 1.40 White.. 

19 5H 54 1.80 Green.. 

20 4H 45 2.40 Black. . 

21 73^ 36 1.60 Pink... 

22 91^ 27 1.40 Red... 

23 6M 36 2.00 Gray.., 

24 8H 36 1.20 Purple. 

25 12K 27 80 White. 

Find  the  total  cost  of  the  25  pieces  of  cloth 


STANDARD  TESTS 

A  test  for  mental  alertness 
Read  these  directions  carefully  and  do  as  you  are  told  to  do. 

1.  Underline  all  the  names  of  articles  in  the  first  column  that  were 
shipped  by  freight  and  contain  exactly  five  letters. 

2.  Place  a  cross  (X)  before  each  name  of  an  article  in  the  first  column 
which  was  shipped  by  freight  and  sold  for  $10  or  over. 

3.  Place  a  cross  (X)  after  each  name  of  an  article  in  the  first  column  that 
was  manufactured  or  made  by  man  and  was  sold  for  less  than  $10. 

4.  In  the  second  column  place  a  cross  (X)  after  the  name  of  each  pur- 
chaser who  bought  articles  in  the  year  1918  for  less  than  $10  in  value. 

5.  New  York  is  the  largest  city  in  the  United  States  and  Chicago  is  the 
second  city  in  size.  Place  a  dot  ( . )  under  each  letter  in  the  name  of  the  largest 
city  found  in  the  third  column. 


256 


OFFICE  TRAINING  AND  STANDARDS 


6.  Cities  are  often  named  in  honor  of  some  noted  person.  Underline 
each  city  in  the  third  column  so  named. 

7.  In  the  third  column  draw  a  line  through  all  the  a's  found  in  the 
names  of  cities  located  in  Illinois,  Indiana,  and  Ohio. 

8.  In  the  fourth  column  draw  a  circle  around  the  i's  found  in  the  name 
of  each  state  to  which  goods  were  shipped  by  parcel  post. 

9.  The  only  state  in  the  United  States  which  is  larger  than  France  is 
Texas.  In  the  fourth  column  place  a  dot  (.)  under  every  letter  of  the  name 
of  the  largest  state  in  the  United  States. 

10.  If  the  articles  in  the  first  column  were  shipped  by  express  in  the  year 
1918,  draw  a  ring  around  all  the  8's  found  in  such  dates  in  the  seventh  column. 

Directions  for  marking: 

There  are  exactly  100  things  to  be  done  in  this  test,  in  which  each  correct 
answer  counts  one  point,  making  a  possible  100  points.  Divide  the  number  of 
points  made  by  the  number  of  minutes  required  in  order  to  find  the  average 
score  per  minute.  If  a  mistake  is  made  in  answering  any  question,  one  point 
should  be  deducted  from  the  correct  score  for  each  mistake.  The  standard 
score  is  10  points  a  minute  or  100  divided  by  10,  if  there  were  no  mistakes  and 
the  time  required  was  only  10  minutes. 

A  large  mail-order  house  sold  and  shipped  the  following  material  to  the 
given  addresses:  (5-14-18  means  May  14,  1918) 


Column  1 
Articles 
Purchased 
Book 
Desks 
Table 
Chair 
Dress 
Robe 
Handker- 
chief 
Bacon 
Lamp 
Candy 

Flour 

Sugar 

Cupboard 

Pamt 

Grass  seed 

Shovel 

Hatchet 

Flannel 

Organ 

Doors 

Wagon 

Lantern 

Napkins 

Kettle 
Piano 


Column  2 

Column  3 

Cobimn  4 

Column  5 

Column  6 

Name  of 

How 

Amount  of 

Purchasers 

Cities 

States 

Shipped 

Purchases 

White 

Red  Oak 

Iowa 

Express 

S     1.19 

Blue 

Ada 

Ohio 

Freight 

22.25 

Brown 

Waco 

Texas 

Freight 

45.00 

Gray 

Gary 

Indiana 

Express 

4.98 

Green 

Oak  Park 

Illinois 

Parcel  post 

66.75 

Lon 

Portland 

Maine 

Parcel  post 

1.33 

Bear 

Dover 

Delaware 

Parcel  post 

1.25 

Fox 

Fremont 

Nebraska 

Freight 

10.00 

Wolf 

Topeka 

Kansas 

Express 

6.89 

Lamb 

Washing- 

ton 

Iowa 

Parcel  post 

1.30 

Berry 

Seattle 

Wash'gton 

Freight 

18.98 

Jolly 

Lincoln 

Nebraska 

Express 

2.26 

Apple 

Salem 

Oregon 

Express 

2.13 

Bright 

Columbus 

Ohio 

Freight 

21.40 

Poor 

Boone 

Iowa 

Express 

18.49 

Good 

Lafayette 

Indiana 

Express 

2.14 

Day 

La  Salle 

Illinois 

Parcel  post 

1.85 

Rich 

Madison 

Wisconsin 

Express 

22,00 

Hare 

Houston 

Texas 

Freight 

145.00 

Moose 

Newton 

Kansas 

Freight 

10.25 

Deer 

Omaha 

Nebraska 

Freight 

175.00 

Purple 
Ball 

Cleveland 

Ohio 

Express 

2.86 

South 

Bend 

Indiana 

Parcel  post 

2.98 

Rock 

Green  Bay 

Wisconsin 

Express 

3.76 

Rod 

Ghicaco 

Illinois 

Freight 

500.00 

Column  7 
Dates 
Shipped 
5/14/18 
6/  9/17 
1/  2/18 
8/12/18 
9/  1/18 
8/16/18 

2/25/16 
5/  7/17 
5/  8/18 

2/  7/17 

11/12/16 

12/20/17 

6/25/18 

8/  5/16 

10/  2/17 

8/11/18 

5/26/17 

3/23/16 

1/27/18 

4/  6/18 

11/14/17 

7  /22/18 

7/27/16 
5/  8/18 
6/13/17 


PERSONAL  STANDARDS  257 

Keep  your  wits  about  you.  Unless  you  are  particularly 
careful  in  answering  the  questions  in  the  following  test,  you  may 
find  that  you  have  made  some  ridiculous  answers.  Train  your- 
self to  grasp  what  the  question  really  asks,  not  what  you  think 
it  asks  or  what  it  seems  to  ask,  but  what  it  actually  does  ask. 

For  example,  take  the  second  question:  "How  many  legs 
has  a  calf  if  the  tail  is  called  a  leg?  "  Regardless  of  what  you  call 
the  different  parts  of  a  calf — even  if  you  called  everything 
''legs" — the  calf  would  still  have  only  four  legs.  Just  because 
the  tail  is  called  a  leg  does  not  make  it  one. 

Now  let's  see  how  good  you  are  at  analyzing. 

STANDARD  TEST 

A  test  for  mental  alertness  in  analyzing 

1.  If  July  fourth  comes  on  Friday,  on  what  day  of  the  month  does  the 
first  of  July  come? 

2.  How  many  legs  has  a  calf  if  the  tail  is  called  a  leg? 

3.  Why  did  Moses  take  the  animals  two  by  two  into  the  ark? 

4.  Who  was  the  father  of  Zebedee's  children? 

5.  If  the  ice  wagon  weighs  2,000  pounds,  the  ice  1,000  pounds,  and  the 
horses  2,500  pounds,  what  does  the  ice  man  weigh? 

6.  A  freight  train  leaves  New  York  for  Chicago  at  the  same  time  a 
passenger  train  leaves  Chicago  for  New  York.  If  the  passenger  train  travels 
twice  as  fast  and  they  each  travel  the  same  number  of  hours,  which  train  will 
be  the  nearer  Chicago  when  they  meet? 

7.  Who  wrote  Franklin's  autobiography? 

8.  Who  invented  the  Bell  Telephone? 

9.  What  was  our  President's  name  eight  years  ago? 

10.  Is  it  true  that  the  laws  of  Illinois  do  not  permit  a  man  to  marry  his 
widow's  sister? 

11.  If  Sunday  were  called  Monday,  would  Thursday  be  Friday? 

12.  How  is  it  possible  in  a  family  for  one  of  the  children  to  have  three 
sisters  while  another  child  of  the  same  family  ha^  only  two  sisters? 

13.  Write  in  figures:  eleven  thousand,  eleven  hundred  eleven. 

14.  Would  you  say  17  and  16  are  32  or  is  32? 

15.  Mr.  Smith  gave  twenty  five-dollar  bills  for  a  horse  and  sold  it  for 
fifty-two  dollar  bills.    Did  he  gain  or  lose  and  how  much? 

16.  Two  men  had  a  wager  as  to  which  could  eat  the  more  oysters;  one 
ate  ninety  and  eight  and  the  other  a  hundred  and  won.  How  many  did  they 
both  together  eat? 

17.  A  milkman  being  asked  how  many  cows  he  had  milked  that  forenoon 
replied :  "  Each  cow  that  I  milked  has  four  feet  and  all  of  my  cows  together  have 
sixty  fore-feet."    How  many  cows  had  he  milked? 


258  OFFICE  TRAINING   AND  STANDARDS 

18.  If  I  pay  a  cent  and  a  quarter  for  a  melon  and  sell  it  for  30  cents,  how 
much  do  I  gain? 

19.  How  many  cubic  feet  of  dirt  can  be  dug  from  a  hole  six  feet  long,  four 
feet  wide,  and  two  feet  six  inches  deep? 

20.  Two  ducks  before  a  duck,  two  ducks  behind  a  duck,  and  a  duck  in  the 
middle.  What  is  the  least  number  of  ducks  possible  if  the  ducks  were  stand- 
ing in  a  row? 

21.  Two  boys,  two  miles  apart,  are  standing  in  a  road  running  east  and 
west.  One  is  facing  toward  the  east  and  the  other  is  facing  toward  the  west. 
If  the  earth  is  25,000  miles  in  circumference,  what  is  the  shortest  distance  each 
boy  may  travel  to  meet  the  other?  They  travel  at  the  same  rate,  in  a  straight 
line,  do  not  turn  around,  and  do  not  walk  backward. 

22.  Mr.  Smith  sold  a  horse  for  $60  and  a  cow  for  $20  less  than  the  horse. 
If  he  gained  $10  on  the  cow,  how  much  did  he  gain  on  the  horse? 

23.  Blue  ribbon  sells  for  five  cents  a  yard  more  than  white  ribbon.  The 
white  sells  for  five  cents  a  yard  less  than  the  black.  How  much  more  does  the 
blue  ribbon  sell  for  than  the  black? 

24.  George  goes  to  bed  20  minutes  earlier  than  his  brother  James,  and 
gets  up  in  the  morning  30  minutes  earlier  than  James.  How  much  longer  is 
James  in  bed  than  George? 

25.  Mary  is  four  years  younger  than  Jane.  Kate  is  five  years  older  than 
Mary.    If  Jane  is  ten  years  of  age,  how  much  younger  is  Kate  than  Jane? 

What  do  you  know?  In  the  following  test  you  will  have 
an  opportunity  to  test  your  knowledge  of  office  training  and 
standards  as  well  as  do  some  original  thinking.  There  are  75 
questions  asked.  Multiply  by  4  the  number  of  questions  an- 
swered correctly  and  divide  the  product  by  3.  The  quotient 
will  represent  your  percentage  of  accuracy. 

STANDARD  QUESTIONS 

Standards  of  knowledge 

1.  What  is  the  primary  purpose  of  office  records? 

2.  Of  what  does  the  work  of  a  purchasing  department  consist? 

3.  How  should  quotations  be  filed? 

4.  How  should  catalogs  and  price  lists  be  filed? 

5.  How  should  catalogs  and  ])rice  lists  be  indexed? 

6.  What  are  the  chief  benefits  of  stock  records? 

7.  What  precautions  should  be  taken  in  regard  to  stock  inventories? 

8.  How  are  results  from  advertising  in  different  mediums  recorded? 

9.  WTiat  are  some  of  the  filing  problems  in  the  advertising  department? 

10.  What  information  should  be  given  on  a  salesman's  report? 

11.  How  are  prospect  cards  made  out  and  handled  in  the  office? 

12.  How  are  customers'  cards  made  out  and  handled  in  the  office? 

13.  Name  some  important  points  to  watch  in  handling  follow  ups. 


PERSONAL  PROBLEMS  259 

14.  How  are  records  used  to  increase  sales  efficiency? 

15.  What  i.s  meant  by  house-order  forms? 

16.  What  are  the  chief  reasons  for  using  multiple  house-order  forms? 

17.  How  is  the  routing  of  orders  handled? 

18.  What  are  some  of  the  points  to  be  gained  by  checking  and  inspecting 
orders? 

19.  What  are  some  of  the  sources  of  credit  information? 

20.  What  use  is  made  of  the  customer's  credit  card? 

21.  Why  should  the  credit  man  be  in  touch  with  collections? 

22.  How  is  the  follow-up  system  used  on  collection  cards? 

23.  What  are  the  advantages  gained  through  cost  accounting? 

24.  What  factors  enter  into  cost  accounting? 

25.  Whose  duty  is  it  to  keep  the  cost  records? 

26.  How  may  records  and  graphs  be  used  to  stimulate  efficiency  among 
employees? 

27.  How  do  comparative  records  of  employees  stimulate  an  interest  in 
work? 

28.  Do  comparative  records  form  a  correct  basis  for  promotion?    How? 

29.  How  may  a  record  of  mistakes  form  a  basis  for  the  assignment  of  an 
employee  to  the  work  for  which  he  is  best  fitted? 

30.  How  does  the  record  of  an  applicant's  examination  constitute  a  basis 
for  permanent  employment? 

31.  How  is  the  keeping  of  records  of  employees  of  value  to  the  employers? 

32.  Of  what  value  are  such  records  to  the  employees? 

33.  What  receipts  are  required  in  the  shipping  department? 

34.  How  does  the  traffic  department  keep  track  of  claims  against  trans- 
portation companies? 

35.  Compare  mail,  express,  and  freight  transportation. 

36.  Compare  the  cost  and  convenience  of  the  parcel  post  and  express 
systems  for  delivering  packages. 

37.  Can  large  shipments  be  sent  c.o.d.  by  freight?    If  so,  how?    If  not, 
why  not? 

38.  Can  packages  be  shipped  c.o.d.  by  mail? 

39.  Can  packages  be  shipped  c.o.d.  by  express? 

40.  Can  money  be  borrowed  on  goods  in  transit  or  in  the  warehouse? 

41.  Is  there  any  advantage  in  shipping  large  packages  by  express?    If 
so,  what? 

42.  Is  it  ever  possible  to  ship  100  pounds  cheaper  by  express  than  by 
freight?    If  so,  when? 

43.  What  size  and  weight  can  be  shipped  by  parcel  post? 

44.  What  is  the  benefit  of  the  parcel  post  to  the  producer? 

45.  What  is  the  benefit  of  the  parcel  post  to  the  consumer? 

46.  What  is  meant  by  registering  mail? 

47.  What  is  the  postal  money  order  system? 

48.  What  is  meant  by  special  delivery? 

49.  What  is  meant  by  telegraph  money  transfer? 


260  OFFICE  TRAINING  AND  STANDARDS 

50.  What  is  a  night  letter? 

51.  What  is  a  day  letter? 

52.  What  is  the  largest  postal  money  order  that  may  be  issued? 

53.  What  is  the  largest  express  money  order  that  may  be  issued? 

54.  What  is  the  largest  United  States  postage  stamp  issued?    Have  you 
ever  seen  one? 

55.  Describe  several  methods  of  sending  money  from  New  York  to  San 
Francisco. 

56.  How  can  you  send  money  from  New  York  to  London? 

57.  What  are  the  two  most  important  points  to  keep  in  mind  when 
writing  a  telegram?    A  cablegram? 

58.  What  is  the  difference  between  a  regular  telegram  and  night  letter? 

59.  Why  is  more  care  required  in  writing  a  cablegram  than  a  lettergram? 

60.  Why  are  code  systems  often  used  in  sending  telegrams  and  cablegrams? 

61.  Why  do  business  firms  have  a  cable  address? 

62.  What  is  the  world's  greatest  commercial  country?  Why? 

63.  What  is  the  world's  greatest  commercial  city?  Why? 

64.  What  is  America's  greatest  commercial  center?  Wh}'^? 

65.  What  is  the  world's  greatest  railroad  center?  Why? 

66.  Is  Europe  better  situated  for  commerce  than  Africa?    If  so,  why? 

67.  Is  the  location  of  Holland  better  than  Belgium  for  commerce?    If 
so,  why? 

68.  Is  North  America  better  situated  for  commerce  than  South  America? 
If  so,  why? 

69.  Is  South  America  better  situated  for  commerce  than  Australia?    Why, 
or  why  not? 

70.  Is  Montreal  better  situated  than  Quebec  for  commerce? 

71.  Is  Chicago  better  situated  for  commerce  than  Buffalo?     Why  or 
why  not? 

72.  Is  New  York  better  situated  for  commerce  than  New  Orleans?    Why, 
or  why  not? 

73.  Why  are  there  more  Atlantic  ports  along  the  northern  coast  of  the 
United  States  than  along  the  southern  coast? 

74.  Why  are  there  more  Atlantic  ports  in  the  United  States  than  there 
are  Pacific? 

75.  Would  you  expect  New  York  or  San  Francisco  to  do  more  trading 
with  Japan?  Why? 


BIBLIOGRAPHY 


BIBLIOGRAPHY 

THE  FOUNDATIONS  OF  A  BUSINESS  LIBRARY 

The  list  of  books  mentioned  here  is  not  intended  to  be  a  comprehensive 
bibliography  on  business  practice;  to  attempt  such  a  task  would  defeat  the  whole 
purpose  of  the  list  given,  which  is  simply  to  furnish  additional  reference  material 
for  the  student  of  oflace  practice  and  for  the  junior  employee  who  is  ambitious  to 
get  ahead.  There  are  bibliographies  and  catalogs  available  which  cover  the  whole 
field  of  business,  and  several  of  these  are  mentioned  at  the  end  of  this  compilation. 

Every  worth-while  book  on  office  organization  and  management  has  been 
included.  The  test  which  has  been  applied  to  each  book  is  its  adaptability  to 
the  purpose  of  the  list.  This  has  undoubtedly  caused  to  be  omitted  certain 
books,  which,  though  splendid  and  of  admitted  excellence  in  their  respective 
fields,  yet  find  no  place  in  a  list  of  this  nature.  If,  however,  through  oversight, 
a  book  has  been  omitted  here  and  there  which  should  be  included,  the  author 
would  appreciate  being  so  advised.  Any  means  by  which  we  can  all  cooperate 
for  the  benefit  of  those  who  are  to  carry  on  the  world's  business,  is  certainly 
well  worth  while. 

Especially  valuable  are  the  references  to  SYSTEM,  the  Magazine  of  Business, 
which  have  been  carefully  selected  from  the  wealth  of  material  available.  Here 
are  given  the  actual  experiences  of  hundreds  of  business  men,  large  and  small, 
and  the  lessons  learned  therefrom  are  pointed  out  unmistakably.  Experience 
has  shown  that  these  excerpts  fron  actual  business  are  exceedingly  helpful  and 
enlightening  to  the  student  of  business  practice. 

MANAGEMENT,  POLICIES,  ORGANIZATION 

OFFICE  MANAGEMENT 
How  TO  Manage  an  Office,  by  the  Editorial  Staff  of  System.    A.  W.  Shaw 

Company,  1914. 
Office  Organization  and  Management,  by  L.  R.  Dicksee  and  H.  E.  Blain. 

Isaac  Pitman  &  Sons,  New  York,  1911. 
The  American  Office,  by  J.  W.  Schulze.    Ronald  Press  Company,  New  York, 

1913. 
Office  Organization  and  Management,  by  C.  C.  Parsons.  La  Salle  Extension 

University,  Chicago,  1917. 
Making  the  Office  Pat,  edited  by  W.  H.  LeflSngwell.  A.  W.  Shaw  Company, 

1918. 
Office  Management,  by  Lee  Galloway.    Ronald  Press  Company,  New  York, 

1919. 

263 


264  BIBLIOGRAPHY 

Scientific  Office  Management,  by  W.  H.  Leffingwell.    A.  W.  Shaw  Company, 

1917. 
System,  the  Magazine  of  Business: 

Casey,  D.  V.    "  Muffling  office  noises. "    March  1914,  pp.  246-252. 

GUmore,  Hinton.    "Gingering  up  office  work. "    August,  1915,  pp.  185-189. 

Hunt,  Carl.    "Routing  incoming  mail."    March,  1915,  pp.  318-320. 

Kent,'  H.  0.    "This  plan  saves  25%  on  wages. "    June,  1918,  pp.  898-900. 

Leflangwell,  W.  H.    "My  plan  for  applying  'scientific  management'  in  an 
office."    October,  1916,  pp.  373-379. 
"41  ways  to  save  time  in  an  office."    February,  1917,  pp.  139-147. 

Murphy,  C.  D.    "Less  office  routine."    November,  1914,  pp.  490-498. 

Robinson,  E.  M.    "  Making  promptness  a  habit. "    April,  1918,  pp.  570-571. 

BUSINESS  ORGANIZATION  AND  MANAGEMENT 
New  Ideals  in  Business,  by  I.  M.  Tarbell.    Macmillan  Company,  New  York, 

1916. 
Industrial  Organization,  by  H.  D.  Martm,  C.  E.  Woods,  and  others.    A.  W. 

Shaw  Company,  1914. 
Organizing  a  Business,  by  M.  H.  Robinson.    La  Salle  Extension  University, 

Chicago,  1915. 
Knack  op  Managing,  by  Herbert  Watson.    A.  W.  Shaw  Company,  1917. 
Twelve  Principles  of  Efficiency,  by  Harrington  Emerson.    Engineering 

Magazine,  New  York,  1912. 
Scientific  Management,  by  C.  B.  Thompson.    Harvard  University  Press, 

Canibridge,  Massachusetts,  1914. 
Library  of  Factory  Management.  Edited  by  F.  M.  Feiker,  C.  D.  Murphy, 

H.  F.  Porter,  and  others.    6  vols.    A.  W.  Shaw  Company,  1916. 
I    Buildings  and  Upkeep 
II    Machinery  and  Equipment 

III  Materials  and  Supplies 

IV  Labor 

V    Operation  and  Costs 
VI    Executive  Control 
An  Approach  to  Business  Problems,  by  A.  W.  Shaw.    Harvard  University 

Press,  Cambridge,  Massachusetts,  1916. 
Some  Problems  in  Market  Distribution,  by  A.  W.  Shaw.      Harvard  Univer- 
sity Press,  Cambridge,  Massachusetts,  1915. 
System,  the  Magazine  of  Business: 

Girl,  Christian.    "  Making  a  small  business  big. "    January,  1918,  pp.  21-25. 
Patrick,  F.  A.    "How  I  train  men  to  spend  my  money."    July,  1918,  pp. 

21-24. 
Rogers,  W.  S.    "  How  we  turned  $14.95  into  $250,000. "    November,  1917, 
pp.  707-710. 
"Would  your  business  go  on  if  you  quit?"  January,  1918,  pp.  44-47. 


BIBLIOGRAPHY  ''  265 

Verity,  G.  M.    ""WTiy  we  have  no  trouble  with  our  men."    May,  1918, 
pp.  707-710. 

ECONOMICS  OF  BUSINESS 
Principles  of  Economics,  by  F.  W.  Taussig.    Macmillan  Company,  New 

York,  1915. 
Economics  of  Business,  by  N.  A.  Brisco.   Macmillan  Company,  New  York,  1913. 
Economic  History  of  the  United  States,  by  E.  L.  Bogart.  Longmans,  Green 

&  Company,  New  York,  1907. 

GENERAL 
SECRETARIAL  WORK 
Private  Secretary,  by  E.  J.  Kilduff.    Century  Company,  New  York,  1916. 
Efficient  Secretary,  by  E.  L.  Spencer.    Frederick  A.  Stokes  Company,  New 

York,  1916. 
Indexing  and  Filing,  by  E.  R.  Hudders.      Ronald  Press  Company,  New  York, 

1916. 
Dectmal  Classification  and  Relative  Index,  by  Melvil  Dewey.    Forest 
Press,  Lake  Placid  Club,  New  York,  1915. 

System,  the  Magazine  of  Business: 

Buchaca,  E.  J.    "  Quick  filing— easy  finding.' '    October,  1914,  pp.  438-440. 
Clark,  N.  M.    "Files  that  find  letters  in  a  hurry."    August,  1915,  pp.  216- 

220.    September,  1915,  pp.  320-324.    October,  1915,  pp.  434^38. 
Jackson,  W.  M.    "An  understudy  for  every  job."    December,  1918,  pp. 

829-831. 
McCahan,  J.  C,  Jr.    "20%  less  for  postage."    June,  1918,    pp.  910-911. 
Murphy,  CD.    "How  300  business  men  handle  their  daily  mail."    July, 

1916,  pp.  11-18. 
Ricker,  G.  A.    "How  much  is  your  stenographer  worth?' '    February,  1916, 

pp.  214-216. 
Smith,  R.  W.    "It's  easy  to  find  Jones' letter— now."    October,  1917,  pp. 

554-555. 
Swan,  F.  M.     "Preparing  men  for  better  jobs."    February,  1918,  pp. 

207-209. 

BUSINESS  CORRESPONDENCE  AND  BUSINESS  ENGLISH 
How  TO  Write  Business  Letters,  edited  by  W.  K.  Smart.    A.  W.  Shaw  Com- 
pany, 1916. 
Handbook  op  Composition,  by  E.  C.  Woolley.    D.  C.  Heath  &  Company, 

Boston,  1907. 
Business  Engush,  by  G.  B.  Hotchkiss  and  C.  A.  Drew.    American  Book  Com- 
pany, New  York,  1916. 


266  BIBLIOGRAPHY 

Course  in  Business  Correspondence,  by  Herbert  Watson.    A.  W.  Shaw 

Company,  1917. 
Business  Correspondence  Library,  by  the  Editorial  Staff  of  System.    3  vols. 

A.  W.  Shaw  Company,  1911. 
Automatic  Letter  Writer  and  Dictation  System,  edited  by  W.  H.  Leffing- 

well.    A.  W.  Shaw  Company,  1918. 
Sales  Correspondence,  by  P.  W.  Lennen,  F.  W.  Wood  and  others.      A.  W. 

Shaw  Company,  1914, 
How  TO  Teach  Business  Correspondence,  by  N.  W.  Barnes.    A.  W.  Shaw 

Company,  1916. 
Collection  of  Master  Business  Letters,  by  Ad-Man  Davison.     Baynard 

Publishing  Company,  Kansas  City,  1916. 
Letters  that  Make  Good,  by  G.  W.  Poole  and  J.  J.  Buzzell.    American 

Business  Book  Company,  Boston,  1915. 
System,  the  Magazine  of  Business: 

Banning,  Kendall.    "Correspondence  dictated  over  the  telephone."     No- 
vember, 1914,  pp.  545-547. 
Davison,  E.  B.    "Does  the  'intimate'  letter  pay?"    September,  1918,  pp. 

323-325. 
Morantz,  David.     "16  ways  to  close  a  letter."    April,  1917,  pp.  426-428. 
Murphy,  C.  D.    "Blue-penciling  your  letter."    March,  1915,  pp.  253-259. 
"Getting  your  story  across."     February,  1915,  pp.  133-140. 
"Making  the  reader  want  to  buy."    January,  1915,  pp.  29-36. 
"Sales  letters  you  read."    December,  1914,  pp.  584-589. 
Raseley,  H.  N.    "Saving  money  by  the  letters  we  don't  write."    July,  1917, 

pp.  44-46. 
Wheeler,  Williard.    "Letters  that  get  confidence."    October,   1915,   pp. 
400-405. 

PURCHASING 
Materials  and  Supplies,  by  H.  F.  Porter,  F.  W.  Harris,  Geo.  H.  Gushing,  and 

others.    A.  W.  Shaw  Company,  1916. 
Purchasing,  by  H.  B.  Twyford.    D.  Van  Nostrand  Company,  New  York,  1915. 
Purchasing,  by  C.  S.  Rindsfoos.    McGraw-Hill  Book  Company,  New  York, 

1915. 
System,  the  Magazine  of  Business: 

Borget,  A.  J.    "Records  the  buyer  needs."    April,  1914,  pp.  404-407. 
Clark,  N.  M.    "Buying  Right."    May,  1915,  pp.  509-514. 

"The  hardest  problem  in  buying."    September,  1916,  pp.  364-372. 
Johnson,  H.  M.    "How  8  merchants  are  bu3'ing."    August,    1918,   pp. 

166-168. 
Porter,  H.  F.    "Meeting  buying  emergencies."   August,  1915,  pp.  170-174. 
Rankin,  N.  S.    "Buying  right  supplies  at  the  right  time."     August,  1915, 
pp.  198-200. 


BIBLIOGRAPHY  267 

Russell,  H.  A.    "Lower  costs  through  a  bujnng  schedule."    January,  1916, 
pp.  85-87. 

ADVERTISING 
Advertising  and  Selling  Practice,  by  J.  B.  Opdycke.    A.  W.  Shaw  Company, 

1918. 
Psychology  of  Advertising,  by  W.  D.  Scott.    Small,  Maynard  &  Company, 

Boston,  1908. 
Advertising,  its  Principles,  Practice  and  Technique,  by  Daniel  Starch. 

Scott,  Foresman  &  Company,  Chicago,  1914. 
Making  Type  Work,  by  Benjamin  Sherbow.    Century  Company,  New  York, 

1916. 
How  TO  Write  Advertisements  that  Sell,  by  the  Editorial  Staff  of  System- 

A.  W.  Shaw  Company,  1912. 
Advertising  as  a  Business  Force,  by  P.  T.  Cherington.     Doubleday,  Page  & 

Company,  New  York,  1913. 
Writing  an  Advertisement,  by  S.  R.  Hall.    Houghton,  Miflflin  Company, 

Boston,  1915. 
Advertising  and  Selling;  Principles  of  Appeal  and  Response,  by  H.  A. 

Hollingworth.    D.  Appleton  &  Company,  New  York,  1913. 
Advertising   and   Correspondence,   by   Lee  Galloway.     (Vol.   4,    Modem 

Business)  Alexander  Hamilton  Institute,  New  York,  1913. 
How  TO  Advertise,  by  George  French.    Doubleday,  Page  &  Company,  New 

York,  1917. 
Principles  and  Practice  of  Advertising,  by  G.  B.  Wadsworth.  G.  B.  Wads- 
worth,  1  Madison  Avenue,  New  York,  1913. 
System,  the  Magazine  of  Business: 

Chamberlin,  C.  L.     "Four  firms  prove  their  advertising  pays."    September, 
1915,  pp.  283-285. 

Clark,  N.  M.    "How  32  advertisers  handle  inquiries."    December,  1915, 
pp.  618-621. 

Martin,  JNIac.    "Sticking  to  the  subject."    April,  1914,  pp.  352-360. 

SELLING 

Knack  of  Selung,  by  the  Editorial  Staff  of  System.    3  vols.    A.  W.  Shaw 

Company,  1913. 
Influencing  Men  in  Business,  by  W.  D.  Scott.    Ronald  Press  Company, 

New  York,  1915. 
Men  who  Sell  Things,  by  W.  D.  Moody.      A.  C.  McClurg  &  Company, 

Chicago,  1913. 
Sales  Promotion  by  Mail.    G.  P.  Putman's  Sons,  New  York,  1916. 
Salesmanship  for  Women,  by  R.  A.  B.  Roche.    Ronald  Press  Company,  New 

York,  1914. 


268  BIBLIOGRAPHY 

Training  for  a  Life  Insurance  Agent,  by  W.  M.  Homer.    J.  B.  Lippincott 

Company,  Philadelphia,  1917, 
Salesmanship  and  Sales  Management,  by  W.  F.  Hypes,  W.  H.  Cottingham* 

and  others.    A.  W.  Shaw  Company,  1914. 
Salesmanship  and  Sales  Management,  by  J.  G.  Jones.    Alexander  Hamilton 

Institute,  New  York,  1917. 
Scientific  Sales  Management,  by  C.  W.  Hoyt.    B.  G.  Woolson  &  Company, 

New  Haven,  Connecticut,  1913. 
System,  the  Magazine  of  Business: 

Clark,  N.  M.    "Selling  the  difficult  prospect."    January,  1916,  pp.  76-81. 
Hillman,  M.  S.    "Picking  the  prospects  that  are  worth  most  to  us.' '    Octo- 
ber, 1918,  pp.  502-504. 
Maxwell,  H.  M.    "How  to  determine  the  market  for  your  product."    Jan- 
uary, 1917,  pp.  53-61. 

"Taking  your  sales  to  pieces."    February,  1917,  pp.  164-171.    March, 
1917,  pp.  276-283.    April,  1917,  pp.  396-403.    May,  1917,  pp.  495- 
501. 
Rosen,  H.  B.    "Personal  Sales— $1,000,000  a  month."    February,  1918, 

pp.  177-181. 
Tarrant,  S.  C.     "Graphs  for  the  sales  manager."     December,  1915,  pp. 

648-649. 
Tucker,  R.  E.    "How  I  size  up  salesmen."  October,  1918,  pp.  510-511. 

TRANSPORTATION  AND  TRAFFIC 
Elements  of  Transportation,  by  E.  R.  Johnson.    D.  Appleton  &  Company, 
New  York,  1909. 

American  Transportation  System,  by  G.  A.  Rankin.    G.  P.  Putman's  Sons, 
New  York,  1909. 

Railway  Transportation,  by  C.  L.  Roper.    G.  P.  Putman's  Sons,  New  York, 
1912. 

American  Railway  Transportation,  by  E.  R.  Johnson.    D.  Appleton  & 

Company,  New  York,  1912. 
Principles  of  Railroad  Transportation,  by  R.  E.  Johnson  and  T.  W.  Van 

Metre.    D.  Appleton  &  Company,  New  York,  1916. 

Ocean  and  Inland  Water  Transportation,  by  E.  R.  Johnson.     D.  Appleton 
&  Company,  New  York,  1911. 

Railroad  Traffic  and  Rates,  by  E.  R.  Johnson  and  G.  G.  Huebner.    2  vols. 
D.  Appleton  &  Company,  1911. 

Railroads,  Rates  and  Regulations,  by  W.  Z.  Ripley.     Longmans,  Green  & 
Company,  New  York,  1912. 

Railroads,  Finance  and  Organization,  by  W.  Z.  Ripley.     Longmans,  Green 
&  Company,  New  York,  1915. 


BIBLIOGRAPHY  269 

System,  the  Magazine  of  Business: 

Cowling,  W.  C.    "Do  you  pay  too  much  for  freight?"    September,  1917, 

pp.  319-321. 
Keena,  F.  V.    "A  drayman's  advice  on  your  packing  methods."    July 

1917,  pp.  54-56. 
McLaughlin,  T.  J.     "  'Send  it  by  freight.'  "    December,  1914,  pp.  630-633. 
Miller,  E.  P.    "How  we  save  on  freight  charges.' '    May,  1917,  pp.  544-549 
Porter,  H.  F.    "19  Ford  policies  that  save  freight  charges."    January, 

1917,  pp.  45-52. 
Simpson,  Frederick.    "Paying  less  for  freight  charges."    June,  1915,  pp. 

638-640. 

ACCOUNTING  AND  COSTS 

Bookkeeping,  Auditing  and  Accounting,  by  W.  M.  Cole.  Whiting  Publish- 
ing Company,  Chicago,  1916. 

Accounts;  Their  Construction  and  Interpretation,  by  W.  M.  Cole. 
Houghton,  Mifflin  Company,  Boston,  1915. 

Elements  of  Accounting,  by  J.  J.  Klein.  D.  Appleton  &  Company,  New 
York,  1913. 

Accounting  as  an  Aid  to  Business  Profits,  by  W.  R.  Bassett.  A.  W.  Shaw 
Company,  1918. 

Accounting  Theory  and  Practice,  by  L.  Greendlinger.  (Vol.  3,  Modern  Busi- 
ness) Alexander  Hamilton  Institute,  New  York,  1910. 

Accounting  and  Office  Methods,  by  W.  E.  Wilson,  E.  M.  Woolley,  and  others. 
A.  W.  Shaw  Company,  1914. 

How  TO  Find  Factory  Costs,  by  C.  B.  Thompson.  A.  W.  Shaw  Company,  1916. 

System,  the  Magazine  of  Business: 

Clark,  N.  M.    "The  A  B  C  of  Accounting."  August,  1913,  pp.  163-168. 
Heilman,    R.    E.    "Profits — the   difference   between   'gross'   and    'net'". 

August,  1917,  pp.  177-179. 
McCullough,  J.  H.    "Nutshell  reports  for  the  boss."  May,   1918,  pp. 

717-720. 
Mueller,  E.  J.    "How  much  do  we  owe?"    April,  1913,  pp.  421-422. 
Schreffler,  R.  B.     "  'I  know  now  why  I  keep  books.' "    February,  1917, 

pp.  195-201. 
Tarrant,  S.  C.    "Reports  that  really  show  the  facts."  June,   1917,  pp. 
649-651. 

CREDITS  AND  COLLECTIONS 

Credit  Man  and  His  Work,  by  E.  S.  Lewis.  Bookkeeper  Publishing  Company, 
Detroit,  1904. 

Credit,  its  Principles  and  Practice,  by  B.  H.  Blanton.  Ronald  Press  Com- 
pany, New  York,  1915. 

Credit  and  its  Use,  by  W.  A.  Prendergast.  D.  Appleton  &  Company,  New 
York,  1906. 


270  BIBLIOGRAPHY 

Advertising,  Selling  and  Credits.     (Vol.  9,  Modern  Business)  Alexander 

Hamilton  Institute,  New  York,  1911. 
Credits  and  Collections,  by  E.  M.  Skinner.    La  Salle  Extension  University, 

Chicago,  1916. 
Credits  and  Collections,  by  P.  R.  Earling,  H.  A.  WTieeler,  and  others.    A.  W. 

Shaw  Company,  1908. 
How  to  Collect  Money  by  Mail,  by  the  Editorial  Staff  of  System.    A.  W. 

Shaw  Company,  1913. 
96  Proved  Plans  for  Collecting  Money  by  Mail,  by  the  Editorial  Staff  of 

System.    A.  W.  Shaw  Company,  1917. 
Collecting  by  Letter,  by  W.  A.  Shryer.    2  vols.    Business  Service  Corpor- 
ation, Detroit,  1913. 
Art  of  Collecting,  by  R.  J.  Cassell.    Ronald  Press  Company,  New  York,  1913. 
System,  the  Magazine  of  Business: 

Blum,  H.  S.    "Legal  pitfalls  to  watch  when  you  extend  credit."    October, 
1916,  pp.  395-401.    November,  1916,  pp.  496-475. 
"Death  and  bankruptcy:  two  credit  problems."    December,   1916, 

pp.  638-642. 
"Collecting  from  bankrupt  customers."    Februarj--,  1917,  pp.  172-179. 
"Collecting  when  your  customer  fails."    April,  1917,  pp.  387-393. 
Clark,  N.  M.    "Bringing  the  debtor  to  terms."    March,  1914,  pp.  303- 

307. 
Givens,  Walter.     "How  we  collect  our  money  sooner."    April,  1918,  pp. 

568-569. 
Harding,  Hon.  W.  P.  G.     "Use  and  abuse  of  credit."    November,  1918, 

pp.  649-651. 
Lewis,  Norman.    "How  can  we  collect  that  money?"    December,  1917, 

pp.  920-921. 
Sammons,  Wheeler.    "Adventures  in  collections."    May,  1915,   pp.  487- 

489.    July,  1915,  pp.  82-86. 
Uehlinger,  H.    "Taking  the  risk  out  of  poor  credits."     October    1917, 

pp.  638-540. 
Wright,  M.  N.    ' 'A  file  that's  always  ready.' '    August,  1917,  pp.  208-209. 
Young,  H.  G.    "How  I  make  collections."    August,    1915,  pp.  175-179. 

FINANCE 
How  to  Finance  a  Business,  by  the  Editorial  Staff  of  System.    A.  W.  Shaw 

Company,  1912. 
Financing  an  Enterprise,  by  Francis  Cooper.    Ronald  Press  Company,  New 

York,  1915. 
Corporation  Finance,  by  E.  S.  Meade.     D.  Appleton  &  Company,  New  York, 

1912. 
Corporation  Finance,  by  W.  H.  Lyon.    Houghton,  Mifflin  Company,  Boston, 

1916. 


BIBLIOGRAPHY  271 

Business  Finance,  by  W.  H.  Lough.     Ronald  Press  Company,  New  York,  1917. 
System,  the  Magazine  of  Business: 

Benson,  H.  L.     "Do  you  know  how  the  banker  sizes  you  up?"    March, 

1919,  pp.  404-405. 
Hanson,  J.  L.     "Common  sense  in  financing."    August,  1918,  pp.  176-178. 
Murphy,  C.  D.     "Are  you  borrowing  at  the  right  price?"    July,  1916,  pp. 
56-61. 

LEGAL 

Elements  of  Business  Law,  by  E.  W.  Huffcut.    Ginn  &  Company,  Boston,  1917. 

Manual  op  Commercial  Law,  by  E.  W.  Spencer.  Bobbs-Merrill  Company, 
Indianapolis,  1898. 

Laws  of  Business  for  all  the  States  and  Territories  of  the  Union  and 
THE  Dominion  of  Canada,  by  T.  Parsons.  S.  S.  Scranton  Company,  Hart- 
ford, Connecticut,  1914. 

Good  Will,  Trade-Marks  and  Unfair  Trading,  by  E.  S.  Ilogers.  A.  W. 
Shaw  Company,  1914. 

SPECIAL 

RETAILING  AND  WHOLESALING 
Making  Your  Store  Work  for  You,  by  the  Editorial  Staff  of  System.    A.  W. 

Shaw  Company,  1917. 
How  TO  Run  a  Store  at  a  Profit,  by  the  Editorial  Staff  of  System.    A.  W. 

Shaw  Company,  1913. 
Keeping  up  with  Rising  Costs,  by  Wheeler  Sammons.    A.  W.  Shaw  Company, 

1915. 
Shaw  Retaiung  Series,  edited  by  Wheeler  Sammons.    A.  W.  Shaw  Company. 

Making  More  Out  of  Your  Advertising,  1919 

Attracting  and  Holding  Your  Customers,  1919 
Course  in  Retail  Merchandising,  by  Robert  B.  Schreffler.    A.  W.  Shaw 

Company,  1916. 
161  Store  Plans  to  Win  New  Trade,  by  the  Editorial  Staff  of  System.    A.  W. 

Shaw  Company,  1916. 
Manual  of  Successful  Storekeeping,  by  W.  R.   Hotchkin.    Doubleday, 

Page  &  Company,  1915. 

Modern  Methods  of  Merchandising,  by  Mac  Martin.  Mac  Martin  Adver- 
tising Company,  Minneapolis,  1915. 

Economics  of  Retailing,  by  Paul  H.  Neystrom.  Ronald  Press  Company, 
New  York,  1915. 

Retail  Selling  and  Store  Management,  by  Paul  H.  Neystrom.  D.  Appleton 
&  Company,  New  York,  1914. 

How  TO  Run  a  Retail  Automobile  Business  at  a  Profit,  by  the  Shaw  Bureau 
of  Business  Standards.    A.  W.  Shaw  Company,  1918. 


272  BIBLIOGRAPHY 

Making  a  Drug  Store  Pay,  by  Frank  Farrington.    Ronald  Press  Company, 

New  York,  1914. 
How  TO  Run  a  Retail  Lumber  Business  at  a  Profit,  by  the  Shaw  Bureau  of 

Business  Standards.    A.  W.  Shaw  Company,  1917. 
How  to  Run  a  Wholesale  Business  at  a  Profit,  by  the  Shaw  Bureau  of 

Business  Standards.    A.  W.  Shaw  Company,  1918. 
System,  the  Magazine  of  Business: 

Dixon,  C.  W.    "Why  they  come  back  to  my  store."    November,  1917, 
pp.  730-732. 

Douglas,  A.  W.    "Why  don't  more  women  trade  with  me?"    December, 

1917,  pp.  906-908. 

Filene,  E.  A.     "Why  the  employees  run  our  business."    December,  1918, 

pp.  805-810. 
Groch,  N.  C.    "Making  money  by  saving  money  for  customers."    June, 

1918,  pp.  890-893. 

Heilman,  R.  E.     "  WTiat's  the  remedy  for  diminishing  profits?"    February, 

1918,  pp.  182-185. 
Johnson,  H.  M.     "12  ways  to  move  stock."    February,  1919,  pp.  213-215. 
Louis,  G.  L.    "More    sales    to    every    customer."    September,     1917, 

pp.  324-327. 
Mench,  J.  L.    "  What  will  sell  best  today?' '    May,  1917,  pp.  552-557. 
Thompson,  C.  B.    "Scientific  management  in  a  retail  store."    December, 

1914,  pp.  568-575.    January,  1915,  pp.  66-71. 
Ullrich,  A.  H.    "Making  it  pleasant  to  spend  money  with  me."    January, 

1918,  pp.  33-35. 
Weld,  L.  D.  H.     "The  right  selling  price."    May,  1918,  pp.  711-713. 
Wildey,  H.  L.     "How  I  keep  trade  at  home.' '    May,  1917,  pp.  474-480. 

BANKING 

Filing  Department,  by  J.  A.  Cramer.    Bankers'  Publishmg  Company,  New 

York. 
Modern  Bank,  by  A.  K.  Fiske.    G.  P.  Putman's  Sons,  New  York,  1904. 
Money  and  Banking,  by  E.  D.  Howard.     (Vol.  6,  Modern  Business)  Alexander 

Hamilton  Institute,  New  York,  1910. 
Money  and  Banking,  by  J.  T.  Holdsworth  and  D.  R.  Dewey.    D.  Appleton 

&  Company,  New  York,"l914. 
Principles  of  Money  and  Banking,  by  H.  G.  Moulton.    University  of  Chicago 

Press, .  Chicago,  1916. 
Banks  and  Banking,  by  H.  P.  Willis.    American  Institute  of  Banking,  New 

York,  1916. 
Shaw  Banking  Series,  by  the  Shaw  Bureau  of  Business  Standards.    A.  W. 

Shaw  Company,  1919. 

Accounting  and  Costs 
Advertising  and  Service 


BIBLIOGRAPHY  273 

Loans  and  Discounts 

Credits  and  Collections 
Buildings,  Equipment  and  Supplies 
Management  and  Executive  Control 
How  TO  Advertise  a  B.-lnk,  by  Benjamin  Jot,  J.  D.  Walker,  and  others.    A. 

W.  Shaw  Company,  1914. 
How  TO  Increase  a  Bank's  Deposits,  by  D.  V.  Casey  and  B.  C.  Bean.    A.  W. 

Shaw  Company,  1910. 
What  it  Costs  to  Run  a  Bank,  by  the  Shaw  Bureau  of  Business  Standards- 

A.  W.  Shaw  Company,  1916. 
System,  the  Magazine  of  Business: 

Dunn,  H.  A.    "The  cash  value  of  a  smile."    April,  1918,  pp.  565-567. 
Regan,  J.  M.    "Does  service  pay?     The  answer  of  89  banks."    May, 
1917,  pp.  504-508. 
"How  71  banks  make  advertising  pay."    April,  1917,  pp.  404-409. 

INSURANCE  AND  REAL  ESTATE 

How  to  Sell  Real  Estate  at  a  Profit,  by  the  Editorial  Staff  of  System.     A. 

W.  Shaw  Company,  1910. 
78  Proved  Plans  for  Handling  and  Closing  Real  Estate  Deals,  by  Joseph 

P.  Day,  and  others.    A.  W.  Shaw  Company,  1917. 
Practical  Real  Estate  Methods,  by  W.  H.  Britigan.    Westside  Y.  M.  C.  A 

New  York,  1909. 
How  to  Sell  Real  Estate,  by  P.  L.  Melberg.    Realty  Service  Publishing 

Company,  Newark,  New  Jersey,  1916. 
Real  Estate  Management  and  Transfer,  by  W.  J.  Jackman.    WTiitman 

Publishing  Company,  Chicago,  1916. 
Insurance  and  Real  Estate.     (Vol.  8,  Modern  Business)  Alexander  Hamilton 

Institute,  New  York,  1911. 
Insurance  Office  Organization,  Management  and  Accounts,  by  T.  E. 

Young  and  Richard  Masters.    Isaac  Pitman  &  Sons,  New  York. 
Principles  of  Insurance,  by  W.  F.  Gephart.    Macmillan  Company,  1917. 
Business  of  Insurance,  by  H.  P.  Dunham.    3  vols.    Ronald  Press  Company 

New  York,  1912. 

Insurance  Science  and  Economics,  by  F.  L.  Hoffman.    Spectator  Company 
New  York,  1911. 

Fire  Insurance  and  How  to  Build,  by  F.  C.  Moore.    Baker  and  Taylor 

Company,  New  York,  1903. 
Fire  Insurance  Agent  and  his  Agency,  by  R.  K.  S.  AUebach.    Spectator 

Company,  New  York,  1909. 

How  TO  Sell  More  Fire  Insurance,  by  H.  Dehnar,  L.  E.  Yoger,  and  others, 
A.  W.  Shaw  Company,  1910. 


274  BIBLIOGRAPHY 

Life  Insueance,  by  S.  S.  Huebner.    D.  Appleton  &  Company,  New  York,  1915. 
Training  for  a  Life  Insurance  Agent,  by  W.  M.  Homer.    J.  B.  Lippincott, 

Philadelphia,  1917. 
How  TO  Sell  More  Life  Insurance,  by  W.  G.  Glazier,  G.  M.  Herrick,  and 

others.    A.  W.  Shaw  Company,  1910. 
Property  Insurance,  by  S.  S.  Huebner.    D.  Appleton  &  Company,  1911. 
System,  the  Magazine  of  Business: 

Collver,  Clinton.     "Do  your  insurance  policies  really  protect  you?"    June, 

1917,  pp.  593-599. 
Mage,  W.  C.     "Picking  the  one  argument  that  fits  the  prospect."    June, 
1917,  pp.  612-616. 

"My  answer  for  'No,  I  don't  need  more  insurance."'  June,  1916,  pp. 
610-613. 
Rosen,  H.  B.     "Personal  Sales— $1,000,000  a  month."    February,  1918, 
pp.  177-181. 

PERSONAL 
VOCATIONAL  GUIDANCE  AND  EMPLOYMENT  MANAGEMENT 

Choosing  a  Vocation,  by  F,  Parsons.  Houghton,  Mifflin  Company,  Boston, 
1909. 

Learning  to  Earn,  by  J.  A.  Lapp  and  C.  H.  Mote.  Bobbs-Merrill  Company, 
Indianapolis,  1915. 

Young  Man  and  His  Vocation,  by  F.  S.  Harris.  Richard  C.  Badger,  Boston, 
1916. 

Profitable  Vocations  for  Boys,  by  E.  W.  Weaver.  A.  S.  Barnes  and  Com- 
pany, New  York,  1915. 

Profitable  Vocations  for  Girls,  by  E.  W.  Weaver.  A.  S.  Barnes  and  Com- 
pany, New  York,  1915. 

Vocations  for  the  Trained  Women,  by  E.  Martin.  Longmans,  Green  & 
Company,  New  York,  1914. 

Careers  for  Our  Sons,  by  G.  H.  Williams.  Macmillan  Comoany,  New  York, 
1914. 

Engineering  as  a  Career,  by  F.  H.  Newell  and  C.  E.  Drayer.  D.  Van  Nostrand 
Company,  New  York,  1916. 

Millinery  as  a  Trade  for  Women,  by  L.  Perry.  Longmans,  Green  &  Company, 
New  York,  1916. 

Training  for  the  Newspaper  Trade,  by  D.  C.  Seitz.  J.  B.  Lippincott,  Phila- 
delphia, 1916. 

Vocational  Guidance,  by  J.  A.  Puffer.  Rand-McNally  &  Company,  Chicago, 
1913. 

Vocational  Psychoixjqy,  by  H.  L.  Hollingworth.  D.  Appleton  &  Company, 
New  York,  1916. 


BIBLIOGRAPHY  275 

Job,  the  Man,  the  Boss,  by  K.  M.  H.  Blackford.  Doubleday  &  Page  Com- 
pany, Garden  City,  New  York,  1915. 

PERSONAL  EFFICIENCY 
How  TO  Get  Ahead,  by  A.  W.  Atwood.    Bobbs-Merrill  Company,  Indianapolis, 

1917. 
Personal  Efficiency,   by   Robert  Grimshaw.    Macmillan   Company,   New 

York,  1918. 
How  TO  be  Personally  Efficient  in  Business,  by  the  Editorial  Staff  of  System. 

A.  W.  Shaw  Company,  1915. 
114  Proved  Plans  to  Save  a  Busy  Man  Time,  by  the  Editorial  Staff  of  System. 

A.  W.  Shaw  Company,  1918. 
Ambitious  Woman  in  Business,  by  Eleanor  Gilbert.    Funk  and  Wagnalls 

Company,  New  York,  1916. 
What  Every  Business  Woman  Should  Know,  by  L.  C.  Kearney.    F.  A. 

Stokes  Company,  New  York,  1916. 
How  TO  Get  and  Keep  a  Job,  by  N.  C.  Fowler.    Oakwood  Company,  Boston, 

1912. 
Getting  the  Most  Out  of  Business,  by  E.  S.  Lewis.    Ronald  Press  Company, 

New  York,  1915. 
Analyzing  Character,  by  K.  M.  H.  Blackford.    Review  of  Reviews,  New 

York,  1916. 
System,  the  Magazine  of  Business: 

Elliott,  Howard.    "  Four  rules  for  greater  personal  effectiveness.' '  January, 
1916,  p.  49. 

Updegraff,  R.  R.    "Stealmg  ideas  from  yourself."    April,  191S,  pp.  542- 
544. 

Woolf,  J.  D.    "Boosting  the  worker's  batting  average."    October,   1918, 
pp.  600-605. 

PERSONALITY  IN  BUSINESS 

Personality  in  Business,  by  Edward  Hines,  H.  E.  Locke,  and  others.  A.  W. 
Shaw  Company,  1917. 

Succeeding  with  What  You  Have,  by  Charles  M.  Schwab.  Century  Com- 
pany, New  York,  1917. 

Captains  of  Industry,  by  James  Parton.  2  vols.  Houghton,  Mifflin  Com- 
pany, Boston. 

Men  who  Are  Making  America,  by  B.  C.  Forbes.  B.  C.  Forbes,  New  York, 
1917. 

Little  Journeys  to  the  Homes  of  Great  Business  Men,  by  Elbert  Hubbard. 
Roycrofters,  East  Aurora,  New  York,  1909. 

American  Blue-Book  of  Biography,  by  T.  W.  Herringshaw.  American  Pub- 
lishers' Association,  Chicago. 


276  BIBLIOGRAPHY 

System,  the  Magazine  of  Business: 

Crowther,  Samuel.    "Frank  Vanderlip."    March,  1917,  pp.  302-305. 
Husband,  Thomas.    "William  Wrigley,  Jr."    February,  1916,  pp.  181-182 
Meldrum,  Barclay.    "John  North  Willys."    September,  1915,  pp.  298-301. 
Pinci,  A.  R.    "Daniel  Willard."    August,  1915,  pp.  180-182. 
Sammons,  Wheeler.    "Thomas  E.  Wilson."    March,  1914,  pp.  297-300. 
Stegren,  F.    "James  Logan."    April,  1917,  pp.  413-416. 
Swan,  F.  M.    "Mrs.  Snyder."    February,  1919.  pp.  228-230. 

BIBLIOGRAPHIES  AND  BOOK  LISTS 

1,600  Business  Books.    H.  W.  Wilson  Company,  White  Plains,  New  York. 

Selected  Professional  and  Business  Books.  Scovell  Wellington  &  Com- 
pany, Boston. 

What  to  Read  on  Business.  (Out  of  print.)  Key  Publishing  Company,  New 
York. 

Book  Review  Digest.    H.  W.  Wilson  Company,  White  Plains,  New  York. 

The  Working  Library.  Educational  Committee,  Advertising  Club  of  New 
York. 

Business  Men's  Library.    Public  Library,  Brooklyn,  New  York. 

Business  Books  of  Today.    Public  Library,  Cleveland,  Ohio. 


INDEX 


Abbreviations,  in  addresses,  13 
ACCOUNTING  DEPARTMENT 
-balance  sheet,  156 

-  chart  of  bookkeeping  entries,  155 

-  cost  accounting,  157 

-  difference  between  bookkeeping  and 

accounting,  149 
-looseleaf  systems,  161 

-  machines,  the  use  of  in  the,  157-159 

-  payroll,  making  up  the,  154 

-  relation  to  other  departments,  5 

-  reports  for  the  executive,  160,  161 
-standards,  161,  162,  163 

-  statement  of  condition,  156 

-  trial  balance,  what  it  is,  150 
-work  of  the  department,  151 

Addresses, 

-  abbreviations  in,  13 

-  cable,  70 
Addressing,  test  in,  244 

ADVERTISING 

-  charts  used  in,  122 

-  checking  returns  from,  123 

-  filing  cuts  and  photographs  used  in, 

124,  126 

-  keys  and  their  uses,  123 

-  schedule  of  insertions,  125 
Alphabetical  filing,  82 
Alphabetical-numerical  filing,  90 
Ambition,  wavs  of  stimulating,  205 
Application  blank  for  employment,  217. 

218,  219 
Atlases,  how  used,  52 
Attention,  test  of,  203 
Automatic  typewriter,  26 

B 

Balance  sheets,  156 

Bill  of  lading,  142 

Billing,  test  for  accuracy  and  speed  in. 

Bin  tickets,  108,  109,  110 
Bond,  getting  a,  228 
Bonus,  for  stenographers  and  typists,  29 
BOOKICEEPING  (see  also  Accounting 
Department) 

-  cash  book,  152,  153 

-  chart,  showing  entries,  155 

-  double-entry  system,  150 

-  entries,  where  to  make,  155 


-journal,  152,  153 

-  ledger,  149,  152 

-  looseleaf  systems,  161 

-  machines,  the  use  of  in,  157-159 
-posting,  153 

-  purchase  book,  153 

-  sales  book,  153 
-standards,  161,  162,  163 

-  trial  balance,  150 
Borrowing  from  the  bank,  171 
Business  magazines  and  trade  periodi- 
cals, 53 


Cable  messages 

-  addresses  in,  70 

-  four  kinds,  the,  69 

-  full-rate  and  half -rate,  70 

-  letters,  70 

-  time  differences,  71 

-  transferring  money  by,  71 

-  week-end,  70 

Capital,  why  it  is  necessary,  170 
Carbon  paper,  in  copying,  25 
Card  index,  the  uses  of  the,  81 
Cash  book,  152,  153 
Charts  showing  organization  of 
-accounting  department,  151 

-  correspondence  department,  1 1 

-  functional  office,  3 

-  sales  department,  116 
Checks 

-  business  puzzles  involving,  190 

-  paying  by,  172 

-  uses  of,  185 

Cipher  and  code  words,  67 

Collections,  the  use  of  statements  in 
making,  154 

Computations  in  the  accounting  depart- 
ment^ 167 

Concentration,  test  for,  254,  255 

Contracts,  sales,  127,  128 

Copies,  of  correspondence,  how  they  are 
made,  25,  26 

Copying,  ink  used  in,  25 

Copying  orders,  methods  of,  139 

CORRESPONDENCE  DEPART- 
MENT 

-  answering  letters 

-  analyzing,  the  reason  for,  21 

-  dictating  machines,  the  use  of,  24 


277 


278 


INDEX 


-  errors  to  avoid  in,  38 

-  fill-ins,  the  use  of  in  form  letters, 

22 
-form    letters    and    paragraphs, 
how  used,  22 

-  taking  dictation,  24 

-  three  steps  in,  21 

-  transcribing,  24 

-  copying  letters  and  papers 

-  automatic  typewriter,  26 

-  carbon  paper,  25 

-  gelatin  duplicator,  25 

-  ink  used  in,  25 

-  letter-press,  25 

-  roller  copying  machine,  25 

-  stencil  duplicator,  25 

-  type-and-ribbon  duplicator,  25 

-  how  to  make  letters  artistic,  24 

-  importance  of  this  department,  5 

-  incoming  mail,  handling 

-  cash  mail,  12 

-  classification,  12 

-  how  enclosures  are  handled,  10 

-  how  the  mail  is  sorted,  9 

-  inspection,  methods  of,  10 

-  mail-opening  table,  how  used,  10, 

15 

-  opening  the  mail,  9 

-  saving     unnecessary     motions, 

ways  of,  10 

-  time  of  receipt,  why  noted,  10 

-  model  letter,  how  used,  23 
-organization  chart,  11 

-  outgoing  mail,  handling 

-  addressing  letters  and  envelops, 

13 

-  enclosures  and  remittances,  26 

-  folding  letters,  14,  16 

-  insuring  packages,  18 

-  maihng  machinery,  13,  14,  16,  17 
-postage,  how  to  determine  the 

correct,  13,  16,  17 

-  registering  letters,  18 

-  remittances  and  enclosures,  26 
-seahng,  14 

-  signing,  methods  of,  26 

-  special  delivery,  sending  by,  18 

-  stamping,  saving  time  in,  14,  17 

-  typevvTiter,  use  of  the^  21,  24 
Cost  accounting,  what  it  is,  157 
Cottingham,  Walter  H.,  232,  233 
Credit  and  coIle(^tion  records,  153 
Credit-rating  books,  how  used,   49,  50, 

51,52 
Cuts,  filing,  127 


Day  letters,  when  to  use,  68 
Departments,  harmonizing  the  work  of, 

196 
Desks,  the  uses  and  abuses  of,  198,  200, 

204 


DICTATION 

-  machines,  24 

-  machine  standards,  30 

-  standards,  33,  34,  36,  37 

-  use  of  English  in,  35 
Dictionary,  how  to  use  in  the  office,  47 
Dictograph,  63 

Directories,  how  to  use,  55 

(see  also  Reference  Books) 
Double-entry  bookkeeping,  150 
Drafts,  173 


ElUott,  Howard,  229 
EMPLOYEES 

-  hiring  and  placing,  202 

-  keeping  contented,  205 

-  qualities  employers  want  in,  215 

-  standard  practice  instructions  for, 

202 

-  stimulating  ambition  in,  205 

-  training,  effective  ways  of,  202 

EMPLOYMENT 

-  analyzing  your  capabilities,  213,  214 
-application  blank,  217,  218 

-  are  you  a  clear  thinker?  222 

-  can  you  follow  instructions?  220 

-  chapter  on,  213 

-  how  to  get  a  position,  213-219 

-  picking  out  your  weak  points,  214 

-  possibilities  open  to  you,  215 

-  selecting  your  employer,  219 

-  selUng  your  services,  213 

-  standards,  223-227 

-  ten  qualifications  for  a  job,  215 
-tests  to  measure  your  ability,  219- 

222 

-  two  standards  for  choosing  a  job,  216 

-  what  employers  are  looking  for,  215 
Enclosures  and  remittances,  10,  26 
Enghsh,  to  use  when  dictating,  35 
Entries,  bookkeeping,  where  to  make, 

155 
Errors  to  avoid  in  writing  letters,  38 
Exchanges,  telephone,  old  and  new,  61 
Executive 

-  delegation  of  detail  by  the,  4 

-  duties  of  the,  4,  6 
-reports  for  the,  160,  161 

EXERCISES 

-business  puzzles  involving  checks, 
190 

-computations  in  the  accounting  de- 
partment, 167 

-credit  and  collection  records,  168 

-differoucos  in  time,  77 

-elementary  principles  of  bookkeep- 
ing, 167 

-  errors  to  avoid  in  transcribing  corre- 

spondence, 38 


INDEX 


279 


-insurance,  192 
-law  of  sales,  130 

-partnerships  and  corporations,  191 
-points  of  law  in  purchasing,  114 

-  points  of  law  in  sales  contracts,  134 

-  problems  the  treasurer  has  to  solve, 

193 

-  some  problems  in  office  efficiency, 

211 

-  suggestive  search  questions,  57 

-  use  of  labor-saving  devices,  165 
-watching  your  English  when  dictat- 
ing, 35 

-  work  of  the  accounting  department, 

166 

-  writing  business  letters,  42 
Express,  when  and  how  to  ship  by,  142, 

147 


FILING 

-alphabetical,  82 
-alphabetical-numerical,  90 

-  assistants,  qualities  and  value  of  cap- 

able, 79,  94 

-  by  date,  87 

-  by  location,  85 

-  by  number,  86 

-  by  subject,  89 
-card  index,  81 

-  comparison  of  different  methods,  90 
-cuts,  127 

-  Dewey  decimal  system,  86 

-  early  methods,  80 

-  equipment,  80 

-  essentials  of  good,  79 
-flat,  80,  84 
-follow-up,  87,  88 

-  geographical,  85 
-unportance  of,  79 

-  numerical,  86 

-  out  cards,  92 
-photographs,  126 

-  removing  letters  from  the  files,  93 

-  requisition  blank  for  correspondence, 

91  92 

-  Shannon  file,  80,  84 

-  standards,  95 

-  topical,  89 

-  transferring  correspondence,  93 
-vertical,  81,  84 

Fill-ins  in  form  letters,  22 

FINANCE 

-bank  loans,  why  they  are  made,  171, 

172 
-bonds  and  stocks,  181 

-  capital,  why  it  is  needed,  170 

-  checking  account,  171 

-  drafts,  use  of  in  collecting  money, 

173 

-  duties  of  the  treasurer,  170 


-  elementary  principles,  175 
-funds,  definition  of,  169 

-  how  capital  is  obtained,  171 
-insurance,  182 

-investments,  how  to  make,  173,  174 

-  meaning  of,  169 

-  notes  receivable,  how  used,  172 
-partnerships  and  corporations,  179, 

180 

-  standards,  175-183 

-  stocks  and  bonds,  181 

-  treasurer,  work  of  the,  170 

-  watching  collections,  172 

-  yield  on  investments,  174 
First  office,  the,  1 

Flat  filing,  80,  84 
Folding  letters,  14,  16 
Follow-up  methods, 

-  in  purchasing,  104,  106,  107 

-  the  tickler  file,  87,  88 

Form  letters  and  paragraphs,  the  use  of, 

22 
Functional  office,  the,  2,  3 
Funds,  definition  of,  169 
Freight  shipments,  142,  147 


Gary,  Judge  Elbert  H.,  232,  233 

Gazetteers,  tises  of,  52 

Gelatin  duplicator,  when  to  use  a,  25 

Geographical  filing,  85 

"Ginger"  letters  in  selling,  120 

Graphs,  the  use  of,  122,  253 

H 

Hiring  employees,  202 
Historical  standards,  7 
How  to  get  a  position,  213-219 


Incoming  mail  (see  Correspondence) 
Initiative,  an  example  of,  235 
Insurance,  188,  192 
Insuring  mail,  18 
Interest,  a  test  in  computing,  250 
Interhouse  telephone,  63 
Investing  surplus  funds,  173,  174 
Invoice,  a  form  of,  137 


Journal,  its  purposes  and  the  entries  in 
it,  152,  153 


Keys,  their  uses  in  advertising,  123 
Ivnowledge,  general  standards  of,  258 


280 


INDEX 


Labels,  how  used  by  one  concern,  141 
Labor-saving  devices,  25,  62,  165,  209 
Layout  of  the  office,  199,  210 
Ledger  and  ledger  entries,  149,  152 
Letter-press,  the  use  of  the,  25 
Letters  (see  Correspondence) 
"  Line-and-staff "  organization,  4 
Looseleaf  bookkeeping,  the  possibilities 
of,  161 


M 


Machinery,  office 

-  muffling  the  noise  from,  201 

-  questions  on,  209 

-  used  in  mailing,  13,  14,  16,  17 
-used  in  the  accounting  department, 

157-159 
-used  in  the  correspondence  depart- 
ment, 24-27,  30,  39 

-  used  in  the  order  department,  139 
Mail  (see  also  Correspondence), 

-seUingby,  115,  120 

-  table  for  opening,  10,  15 
MaiUng  lists,  120 

Mailing  machinery,  13,  14,  16,  17 
Maihng  standards,  19 
Manager,  the  problems  of  the,  195-212 
Maxims,  business,  how  to  use,  238 
McGowan,  Rear  Admiral  Samuel,  231 
Memorandum   shp   for   recording   tele- 
phone messages,  66 
Memory  and  attention,  a  test  in,  242 
Mental  arithmetic,  a  test  in,  251 
Military  office,  the,  2 
Model  letter  for  stenographers,  a,  23 
Money,  telegraphing  and  cabling,  71 

N 

Night  letters  and  messages,  68 
Noises,  office,  how  to  muffle,  201 
Notes  receivable,  172 


OFFICE 

-  desks,  and  desk  arrangement  in,  198, 

200,  204 

-  development  of  the,  7 
-first,  the,  1 

-  function  of  the,  2 

-  functional,  the,  2,  3 
-layouts,  good  and  bad,  197-199 

-  lighting,  effective,  201 

-  "Une-and-staff "  organization  of,  4 

-  mihtary  organization  of,  2 

-  muffling  noises  in,  201 

-  one-man  office,  the,  2 

-  physical  details  of,  197 


-  relation  to  the  rest  of  the  organizi^- 

tion,  4 
-some  problems  in  the  efficiency  of, 
211 

-  ventilation  of  the,  201 

-  what  it  takes  to  make,  1 
One-man  office,  the,  2 

ORDERS 

-  analyzing,  136 

-  approved  by  credit  department,  136 

-  blanks  used  in  getting,  135,  137 

-  chart  showing  progress  of,  137 

-  filhng,  on  time,  136 

-  how  copies  are  made,  139 

-  number  of  copies  required,  138 

-  progress  of,  137 
-registering,  135 

-  purchase,  progress  of,  138 
Organization  charts 

-  accounting  department,  151 
-correspondence  department,  11 

-  functional  office,  3 


-sales  department,  116 
Out  cards,  in  filing,  use  of,  92 


Packing,  proper,  why  necessary,  142 
Parcel  post,  shipping  by,  144 
Partnerships  and  corporations,  179-181 
Payroll,  making  up  the,  154 
Penmanship  standards  and  tests,  245, 

246 
Personal  questions,  214 
Personahty  standards,  236,  237 
Photographs,  filing,  ways  of,  126 
Points  of  law 

-  in  finance,  176-183 

-  in  purchasing,  114 

-  in  sales  contracts,  134 

-  in  selling,  130 

-  in  sliipping,  148 
Position,  how  to  get  a,  213-219 
Postage,  using  the  correct,  17 
Post  at  guide,  U.  S.,  use  of,  53 
Posting,  definition  of,  153 
Production  and  distribution,  6 
Purchase  book,  the  use  of  the,  153 
PURCHASING  DEPARTMENT 

-  following  up  orders,  104,  106,  107 

-  information,  how  to  compile,  100 

-  object  and  work  of  the,  99 
-orders,  how  to  handle,  104,  105 
-quotations,  getting  and  using,  103, 

106 
-requisitions,  the  use  of,  99,  100,  101 

-  sources  of  information  available,  103 

-  specification  blank,  object  and  use  of 
the,  102,  103 

-standards,  112,  113 

-  watching  the  market,  100 


INDEX 


281 


Qualities  employers  want  in  employees, 
215 

QUESTIONS 

-  applications  of  business  maxims,  238 

-  concerning  contracts  and  other  legal 

papers,  133 

-  credit  and  collection  records,  165 

-  development  of  the  office,  8 
-elementary  principles  of  bookkeep- 
ing, 164 

-  elementary  principles  of  finance,  184 
-functions  of   the   shipping   depart- 
ment, 147 

-  getting  a  bond,  228 

-  handling  outgoing  mail,  20 
-hiring,    training,   and   holding   em- 
ployees, 211 

-  how  to  use  directories,  55 
-insurance,  188 

-office   appliances   and   labor-saving 
devices,  209 

-  office  from  the  manager's  desk,  208 
-office  layout,  210 

-  opening,  sorting,  and  distributing 

mail,  18 

-  parcel-post,  express,  and  freight  ship- 

ments, 147 

-  partnerships  and  corporations,  187 

-  points  of  law  in  shipping,  148 

-  routine  of  the  order  department,  140 

-  sales  department,  132 

-  some  personal  questions,  214 

-  sources  of  information,  54 

-  technique  of  business  correspon- 

dence, 41 

-  technique  of  filing,  97 

-  telegraph  and  cable  messages,  76 

-  the  treasurer  has  to  answer,  189 

-  typing  and  addressing  letters,  41 

-  use  of  labor-saving  devices,  165 

-  use  of  the  telephone,  75 

-  uses  of  checks,  185 

-  values  and  prices  in  purchasing,  114 

-  work  of  the  purchasing  department, 

113 

-  work  of  the  treasurer's  office,  184 

-  your  chances  for  success,  238 
Quotations,  how  the  buyer  gets  them, 

,103,  106 


Railroad  guide,  53 
Records 

-  credit  and  collection,  153 

-  necessity  for,  the,  5 
-sales,  117 

REFERENCE  BOOKS 

-  atlases,  52 


-  business  magazines  and  journals,  53 

-  classification  of,  43 

-  code  book,  49 

-  credit-rating  books,  49,  50,  51,  52 

-  dictionary,  47 

-  directories 

-  bankers',  48 

-  city,  44 

-  classified,  46 

-  manufacturers',  48 

-  partnership  and  corporation,  48 

-  sources  of  mailing  lists,  48 

-  special,  47 

-  telephone,  45 

-  first  American  directory,  43 

-  gazetteers,  52 

-  railroad  guide,  53 

-  social  register,  48 

-  synonym  books,  47 

-  trade  periodicals,  53 
-U.S.  postal  guide,  53 

-  value  of,  54 
Registering  mail,  18 
Reports,  salesmen's,  117,  118 
Requisitions 

-correspondence,  91 

-  purchase,  99-101 
Roller  copying  machine,  25 
Rosenwald,  Julius,  231 

ROUTINE 

-  accounting  department,  151,  161 
-correspondence  department,  9,   11, 

21,  22 

-  filing  department,  95 

-  general  office,  3 

-  of  the  manager,  206 

-  order  department,  135-140 

-  purchasing  department,  1 12 

-  sales  department,  1 16 

-  shipping  department,  143 

-  treasurer's  office,  170,  175 


s 

SALES 

-  advertising  as  a  source  of,  115 
-by  mail,  115,  120 

-  contracts,  points  in,  127,  128 
-department,   organization  chart  of 

the,  116 
-department,  work  of  the,  115 

-  mailing  hats,  used  in  making,  120 

-  records  of,  for  the  sales  manager,  117 
Sales  book,  purpose  of,  153 

SALESMEN 

-  daily  report  of,  117,  118 

-  "ginger  '  letters,  how  used,  120 

-  what  they  do,  115 
Schedule  for  advertising,  125 
Schwab,  Charles  M.,  230,  232 
Scientific  management,  4 


INDEX 


Score,  how  to  keep.  253 

Scott,  Nellie  M.,  231 
Sealing  letters,  14 
Selling  standards,  128,  129 
Shannon  file,  80,  84 

SHIPPING  DEPARTMENT 
-authority  required,  141 

-  bill  of  lading  defined,  142 
-duties  of,  141 

-  express  and  freight  shipments,  142 

-  labels,  how  used,  141 

-packing,  proper,  why  necessary,  142 
-standards  of  the,  143,  144,  145,  146 

-  tariffs,  how  obtained,  143 

-  tracers  and  claims,  using,  143 
Signing  letters,  26 

Simple  interest,  a  test  in,  250 
Social  register,  how  used,  48 
Special  delivery,  how  secured,  18 
Specification  blank,  buyer's,  1 02,  103 
Stamping  envelops,  a  rapid  method  of, 

14,  17 
Standard  practice  instructions,  202,  241 

STANDARDS 
-accounting,  161,  162,  163 
-dictating  machine,  30 
-dictation,  33,  34,  36,  37 
-efficiencv,  241 

-  emplovment,  223-227 

-  filing,  95 
-financial,  175-183 

-  historical,  7 

-  how  they  are  set,  240 

-  how  you  can  use  them,  241 
-mailing,  19 

-  methods,  239 

-  of  accomplishment,  241 

-  office,  206 

-  of  knowledge,  258 
-order  department,  139,  140 

-  penmanship,  246 

-  personality,  236,  237 
-purchasing,  112,  113 
-selling,  128,  129 
-shipping,  143,  144,  145,  146 

-  stenographic,  29,  30 

-  telegrai)h,  73 
-telephone,  72 

-  typing,  39 
-typists',  32 

-  what  they  are,  239 
Statement  of  condition,  156 
Statements,  when  to  send,  154 
Stencil  duplicator,  when  to  use  the,  25 
STENOGRAPHERS    (see   also   Corre- 
spondence) 

-bonus  for,  29 

-  correct  posture  for,  27 

-  scale  to  measure  the  work  of,  31 

-  standards  of  work  for,  29 

-  test  for,  28 


Stock,  taking  inventory  of.  111 
STOCK  ROOM 

-  bin  tickets  for  use  in,  108,  109 

-  clerks  on  roller  skates  in  a,  109 

-  purpose  of  the,  108 

-  unit  bins  used  in  the,  109 

-why  material  should  be  accessible, 

108 
Straight-line  principle,  meaning  oi  the, 

197 
Sjaionym  book,  47 


Tariffs,  how  obtained,  143 
Technique  of  filing,  97 
Telautograph,  64 

TELEGRAPH 

-  brevity  in  using.  65 

-  cipher  and  code  words,  use  of,  67 

-  compared  with  telephone,  64 

-  day  letters,  when  to  use,  68 

-  how  to  make  your  meaning  clear,  67 

-  night  letters  and  messages,  when  to 

use,  68 

-  standards,  73 

-  time  differences,  how  to  reckon,  71 

-  transferring  money  by,  71 

-  what  it  costs  to  use  the,  64 

-  when  to  use  the,  59 

-  writing  the  telegram,  65,  66 

TELEPHONE 

-  calling  the  number,  the  right  way  of, 

60 

-  exchanges,  old  and  new,  61 

-  how  to  answer  the,  63 

-  how  to  use  the,  59 
-interhouse,  how  used,  63 

-  memorandum  slip  for  messages,  66 

-  standards,  72 

-  when  to  use  the,  59 

TESTS 

-  addressing  244, 

-  analyzing,  257 
-attention,  203 

-  billing,  247 

-  concentration.  254,  255 

-  employment,  220-222 

-  memory  and  attention,  242 

-  mental  arithmetic,  251 

-  penmanship,  246 
-ra])i(i  calculation,  248 

-  score  card,  253 
-simple  interest,  250 
-stenograplicrs',  2S,  39 

-  to  measure  ability,  219 
-typists',  40 

-  vocabulary,  243 

Time,  differences  in,  calculating,  77 
Topical  filing,  98 


INDEX 


283 


Tracers  and  claims,  using,  143 
Trade  periodicals,  why  valuable,  53 
Transcribing  letters,  24 
Training  employees,  means  of,  202 
Treasurer,  functions  of  the,  169,  170 

(see  also  Finance) 
Trial  balance,  what  it  is,  150 
Typewriter,  uses  of  the,  21,  24,  39,  139, 

157 
Typing  standards,  32,  39 
Typists'  test,  40,  219,  244 


u 


Unit  bins,  109 

U.  S.  Postal  guide,  how  used,  53 


Values  and  prices  in  purchasing,  114 
Vanderlip,  Frank  A.,  230,  232 
Ventilation,  why  needed,  201 
Vertical  filing,  81,84 
Vocabulary  test,  243 

w 

Watching  your  English  when  dictating, 

35 
Willard,  Daniel,  230 
Wilson,  Thomas  E.,  231 
Writing  business  letters,  42 
Writing  telegrams,  65,  66 


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